Capital Impact Partners And JPMorgan Chase Team Up To Help African American Developers Rebuild Detroit
The Equitable Development Initiative is a part of an effort to encourage small diverse developers to take on larger products.
October 28, 2017 at 2:01 pm
A new $5 million program offered by Capital Impact Partners will provide financing and training opportunities for African American real estate developers in Detroit grow their businesses. JPMorgan Chase is investing $500,000 into The Equitable Development Initiative in an effort to increase the number of minority developers in Detroit.
The two-year pilot program is part of a larger movement to encourage small, minority-owned business to work on larger products and be successfully while doing it. According to Black Enterprise, the program allows black developers to be a major part of Detroit's economic recovery.
The program provides these business owners with equitable capital, one-on-one mentorships with local experts and training to support real estate business they own and operate. Another part of the program's goal is to spark the development of small- and mid-sized, mixed-use, multifamily residential projects in the city.
Melinda Clemons, Detroit Market Lead at Capital Impact Partners, said some of the challenges for African American real estate developers are experience, access to financing and knowledge of larger upcoming projects. Clemons said the Equitable Development Initiative will assist in making minority real estate developers a major part of Detroit's recovery and mirror the success they've seen with similar programs in other cities.
"We’ve seen success in the implementation of similar type programs in other cities like Milwaukee and Los Angeles and are confident this new effort will ensure that the brick-and-mortar development component of Detroit’s economic growth continues to be inclusive,” Clemons said in a press release.
The program is geared specifically for developers of color in the Detroit area with some experience in real estate development. To be eligible, developers have to be planning to build a six to 20 residential unit, multifamily or mixed-use development in the city's targeted redevelopment areas. While those who are already planning to build in these areas will take priority in this program, Capital Impact will also consider developers who don't have a project.
The program will be accepting applications through the end of November. Find additional information about the Equitable Development Initiative at Capital Impact Partners.