Capital Impact Partners is making it their mission to support minority real estate developers in Detroit. With the heavy investment in a re-surging Detroit, black developers are finding it hard to win contracts. According to Capital Impact Partners, “of the $152 million loaned in Detroit between 2006 and 2015, projects led by minority developers received only 10% of the financing. Detroit has nearly 50,000 minority-owned small businesses, making it the nation’s fourth-largest city for minority entrepreneurship.” The new $5 million program by Capital will help encourage small diverse developers to work on larger products by supplying them with both money and resources to do so.
Although Capital Impact Partners is in the process of raising the $5 million to support the program, companies like JPMorgan Chase have already given their support, “investing $500,000 into Capital Impact Partner’s Equitable Development Initiative to increase the number of minority developers in Detroit.” The investment will take place over two years and is part of JPMorgan’s “$150 million investment in Detroit. The bank in 2014 committed $100 million to the city for five years. This year it invested another $50 million.”
With the rebuilding of Detroit underway, one of the biggest concerns in the black community is the lack of opportunity for upcoming projects. In a city where over 80% of its residents are African American, the inability to join in on high revenue projects is disheartening, however initiatives like the one from Capital Impact Partners is greatly reassuring. Hopefully more initiatives can pop up to ensure that the local community actually benefits from local projects.
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