• A collaboration between Gilbert Family Foundation, Invest Detroit, and Detroit Development Fund, Motor City Contractor Fund (MCCF) provides Detroit-based contractors with access to financing, strategic partnerships, technology and business advisory services.
  • Following a successful pilot program with 25 contractors, MCCF has expanded to serve 50 additional participants.
  • Each cohort member receives a $5,000 grant to support customized business growth initiatives, such as improving credit, enhancing bonding capacity, building an online presence and more. 

DETROIT, Dec. 10, 2024 – Gilbert Family Foundation, Invest Detroit and Detroit Development Fund today announced the expansion of Motor City Contractor Fund (MCCF), a community-led effort curated by The Ownership Initiative. Through the expansion, the program will empower 50 Detroit-based contractors with targeted resources to strengthen their businesses and increase their competitiveness in Detroit’s booming construction market.

The program offers contractors access to financing, technical support and business development services, along with opportunities to build meaningful partnerships with large companies deeply involved in Detroit’s construction industry. As demand for construction, home repairs and rehabilitation projects continue to rise, MCCF equips local contractors with essential tools to grow their businesses and secure a wider variety of contracts, including both public- and private-sector opportunities. In doing so, the program not only fosters contractor growth but also contributes to job creation and economic development in Detroit.

“More than $5 billion in annual commercial construction in Detroit is done by contractors from outside the city. MCCF is one way we’re working to keep that wealth in Detroit, serving Detroiters,” said Laura Grannemann, Executive Director, Gilbert Family Foundation. “We are thrilled to welcome this next cohort of talented contractors and are eager to see how the program will help their businesses grow.”

Motor City Contractor Fund was established to address systemic barriers faced by smaller contractors in Detroit, especially those led by entrepreneurs of color. Minority-owned firms have historically been excluded by traditional lenders due to systemic bias and industry-related risk factors. Even when loans are approved, these firms often encounter higher interest rates, which limit their ability to scale and succeed.

These challenges are addressed by combining flexible lending, business advisory services, and tailored technical assistance to empower contractors to overcome these barriers and achieve long-term success.

Collaborative Partnerships Drive Success

Invest Detroit, a Community Development Financial Institution (CDFI), serves as the arranger and loan originator for t Motor City Contractor Fund. As a mission-driven lender and investor, Invest Detroit supports business and real estate projects that promote economic growth, strengthen Detroit neighborhoods, increase density, create job opportunities and foster inclusivity.

Invest Detroit also manages the program’s financial products, leads program structuring, coordinates loan agreements to provide capital, oversees the fund’s website, facilitates connections with job providers and engages key partners to ensure the program’s success.

“The Motor City Contractor Fund represents a transformative opportunity for Detroit’s small and minority-owned contractors to break through systemic barriers and grow their businesses,” said Shenai Jackson, Program Manager, Motor City Contractor Fund. “By providing the tools, financing, and partnerships they need to succeed, we’re helping to build a stronger community and create a more inclusive and thriving economy in our city.”

LifeLine Global Consulting administers technical assistance through tailored tracks—Fast Track and Fortified Track—designed to meet contractors at their level of readiness. Training topics include business planning, accounting, labor management, safety training and digital marketing.

Metro Detroit-based Barton Malow, along with Detroit Development Fund, contributes additional training, mentorship and access to bid opportunities on major development projects.

The Ownership Initiative, a Detroit-based Black-owned impact advisory firm, conducted a program redesign to improve operational efficiency and maximize impact.

Building on MCCF Pilot Program’s Impact

Motor City Contractor Fund launched its pilot program in April 2022 with an initial cohort of 25 Detroit-based contractors, which ran through May 2023. The program demonstrated significant impact, providing both financial support and business development opportunities tailored to the needs of small and minority-owned contractors.

Key achievements from the first cohort include:

  • $3.5 million was disbursed overall during the pilot.
  • Nine contractors secured a total of $1.9 million in loans.
  • Participants attended 16 events, including industry-led workshops on identifying new job prospects, digital marketing, financing, and business best practices.
  • Contractors engaged with over 20 job providers, gaining insights into various development projects across Detroit.

Like the pilot group, the second cohort will receive $5,000 grants to address individual business needs so they can strengthen their operations and be better positioned to participate in Detroit’s ongoing economic revitalization.

To be eligible for upcoming cohorts, applicants must be headquartered in Detroit or have multiple active or upcoming projects in the city, employ Detroit residents, and demonstrate experience in residential or commercial contracting. Applicants should have at least two years in business or substantial personal experience, or, if successors of an existing business, demonstrate relevant management expertise. LISC home repair applicants must have completed 3–5 projects and provide references or sponsorship letters.

Qualified contractors can discuss capital needs with community-based lenders, who will review documentation and underwrite loans based on their criteria. Interested contractors can learn more or apply for cohort three at https://www.motorcitycontractorfund.org/home/#application.

 

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About the Gilbert Family Foundation

 

Gilbert Family Foundation is a private nonprofit foundation founded by Jennifer and Dan Gilbert to accelerate a cure for neurofibromatosis type 1 (NF1) and build economic opportunity in the city of Detroit. The Gilbert Family Foundation supports groundbreaking, cutting-edge research in hopes of eradicating NF1, a genetic disorder that causes tumors to grow on nerves anywhere in the body. Additionally, the Foundation supports the economic stability and mobility of residents in Detroit by investing in wealth-building opportunities and breaking down systemic barriers.

 

For more information on the Gilbert Family Foundation, please visit gilbertfamilyfoundation.org.

 

About Invest Detroit

 

Invest Detroit is a nonprofit lender, investor, and partner that supports business and real estate projects that will ignite economic growth in Detroit and support inclusive growth of entrepreneurial ventures across the state. Our goal is to help create a thriving city that works for all Detroiters with an improved quality of life–inclusive housing, resourced and walkable neighborhoods, and equal opportunities for jobs and business growth; and scale promising early-stage ventures into thriving companies that help support the state’s economy, provide jobs to local talent, and bolster Michigan’s growing startup community.

 

Learn more at www.InvestDetroit.com.

 

 

About Detroit Development Fund

 

DDF was established in 1996 with a mission to “improve the quality of life for residents in underserved Detroit neighborhoods.” A 501(c)(3) and certified as a CDFI, DDF provides term loans and lines of credit to small businesses, small contractors, and for-profit and nonprofit affordable housing developers. DDF currently manages $23 million in loan capital. Since lending activities began in 2002, DDF has closed over $36 million in loans to businesses in Detroit, which helped to retain approximately 1,200 jobs and created approximately 1,800 new jobs. Approximately 72 percent of DDF’s small business loans have been made to minority owned companies, and over 1,400 housing units were rehabbed as a result of DDF’s loans. DDF lending activities have leveraged over $200 million in public/private investments with more than $7 million in projects under management.