Michigan board backs $10 million community lending loan

A pooled fund for community lenders

The Michigan Strategic Fund Board has authorized a loan of up to to the Michigan CDFI Coalition, the Michigan Economic Development Corporation announced. The money will establish the coalition’s first pooled loan fund operating statewide.

The coalition will administer the fund and make capital available to participating Michigan-based, non-depository Community Development Financial Institutions, known as CDFIs. Those lenders can use the added capacity to finance entrepreneurs, homebuyers, housing developments and projects focused on neighborhood improvements. The loan also is intended to help eligible lenders offer technical assistance to borrowers.

Michigan has at least 45 operating CDFIs, including 27 loan funds and 18 credit unions. The coalition, founded in January 2023, brings community development lenders together to work on lending programs, services and policy.

Who could participate

Eighteen organizations are eligible for consideration, including Chi Ishobak, Cinnaire Lending Corporation, CORE Community Partners, Detroit Development Fund, Grand Rapids Opportunities for Women, Great Lakes Women’s Business Council, Invest Detroit and Lake Superior Community Development Corporation.

The list also includes MCC/Magnet Lending, Metro Community Development, MI Assistive Technology Fund, Michigan Women’s Foundation, Northern Great Lakes Initiatives, Northern Shores Community Development, Opportunity Resource Fund, ProsperUS Detroit, Rende Progress Capital, and Venture North Funding and Development.

U.S. Treasury data cited by the coalition show that Michigan CDFIs issued billion in loans from 2005 through 2023. The coalition says that financing reached more than 26,000 microenterprises and small businesses, helped create or preserve more than 82,000 jobs and contributed to 28.9 million square feet of real estate development.