LANSING, Mich. – In a significant move to bolster the state’s economic framework, the Michigan Economic Development Corporation (MEDC) has announced that the Michigan Strategic Fund (MSF) Board has approved a substantial loan of up to $10 million. This funding aims to enhance lending capital for Michigan’s Community Development Financial Institutions (CDFIs), which are pivotal in providing flexible and affordable financing options.
These CDFIs serve as crucial financial instruments, supporting small businesses, affordable housing, and community spaces. Michigan is home to at least 45 such institutions, including 27 loan funds and 18 credit unions, demonstrating the state’s commitment to diverse financial solutions.
The newly approved funding will be pooled and managed by the Michigan CDFI Coalition. This nonprofit entity, established in early 2023, focuses on policy collaboration, lending solutions, and programming within the state.
By channeling public resources to support CDFIs, Michigan positions itself as a leading model nationwide, particularly in the context of a challenging national lending environment. This innovative public-private partnership aims to amplify the impact of CDFIs through enhanced lending and technical support.
According to Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair, “Today’s approval by the MSF Board invests in the mission of the Michigan CDFI Coalition and its network of Community Development Financial Institutions, providing tools and resources to aspiring small business owners, homebuyers, and communities across the state.”
Elissa Sangalli, Chair of the Michigan CDFI Coalition and President and CEO of Northern Initiatives, expressed gratitude, saying, “This loan will help us build and launch our first statewide pooled loan fund that will help our CDFI community provide flexible capital so residents can fulfill dreams of starting a small business and supporting housing and neighborhood projects in local communities.”
Eligible non-depository CDFIs for the loan include Chi Ishobak, Inc., Cinnaire Lending Corporation, CORE Community Partners, and several others, each playing a distinct role in Michigan’s economic landscape.
According to data from the U.S. Treasury, Michigan CDFIs have deployed $6.3 billion in loans from 2005-2023, impacting over 26,000 businesses and creating or retaining more than 82,000 jobs while developing nearly 29 million square feet of real estate.
Among the beneficiaries is Chef Ameneh Marhaba, owner of Little Liberia, Michigan’s exclusive Liberian restaurant, located in Detroit’s East English Village. The restaurant is part of The Ribbon, a mixed-use development partially funded by the MEDC.
Significant milestones achieved with CDFI support include the Cadillac Lofts redevelopment and the new Sawmill Lofts housing project in downtown Grayling, among others.
State Sen. Mary Cavanagh (D-Redford Township) commented, “Michigan is home to the largest CDFI coalition in the country… CDFIs are economic development in action, helping small businesses grow, supporting first-time homebuyers, and investing in revitalization projects that strengthen our neighborhoods and commercial corridors.”
About Michigan Economic Development Corporation (MEDC)
Read More Here
Comments are closed.