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Finance

“So, my business plan is now solid.  But, I am a creative sector business with little collateral.  My assets: my idea, my laptop, a smart phone, some software.  I need financing, but finding it is difficult, especially with little to offer for collateral. Where do I go?”

Venture Capital

Got an amazing idea, practical experience and a good pitch?  Shop it around, and use the below links to learn more about a few players in Southeast Michigan’s venture capital community.

  • Detroit Venture Partners | Creative business builders, not money managers. Entrepreneurs helping other entrepreneurs build and grow meaningful companies. Click Here for more information.
  • Renaissance Venture Capital Fund | The Renaissance Venture Capital Fund is a Michigan-based fund of funds that supports the growth of venture capital in Michigan while serving as a bridge between Michigan’s emerging innovation company community and its strong industrial and commercial base.   Click Here for more information.
  • Beringea | With offices on three continents, Beringea funds and advises exceptional companies in growth industries.   Click Here for more information.
  • Venture Michigan Fund | A $95 million venture capital fund investment program was formed under the Michigan Early Stage Venture Investment Act of 2003 (or the “Act of 2003″). VMF seeks to promote Michigan’s economic health by assisting in the creation of new jobs, new businesses and new industries in Michigan through the creation of a fund-of-funds that would invest in private equity managers that invest primarily in Michigan-based early stage venture capital companies.   Click Here for more information.

Detroit Downtown Development Authority Programs

Programs for both the property owner seeking to lure a creative enterprise as a tenant and for the creative enterprise seeking to locate and grow in Detroit’s Creative Corridor.

  • Detroit Revolving Loan Fund | A fund to stimulate additional, small-scale redevelopment and/or new construction projects in downtown Detroit.   Click Here for more information.
  • Housing/Office/Retail Development Loan and Absorption Fund | $2 million to stimulate additional residential and commercial activities in downtown Detroit.   Click Here for more information.
  • Business Development Loan Fund | Provides financing to restuarants and retailers who locate in specific areas in the greater downtown area.   Click Here for more information.
  • Wayne County SBA 504 Loan Program | Financing for small to medium sized businesses, in operation for three years or more.  Provides 40% of funding for projects ranging from $150,000 to $5,000,000.   Click Here for more information.

Detroit Economic Growth Corporation

DEGC offers many unique programs that can assist both the property owner seeking to attract a creative enterprise as a tenant or the creative sector business seeking to locate or expand in Detroit’s Creative Corridor.  One of our favorites:

  • Creative Corridor Incentive Fund | Provides financing to creative businesses wishing to locate in the greater downtown area and by helping them offset the costs with starting a business in the city.   Click Here for more information.

Midtown Detroit, Inc.:

For the land owner seeking to attract creative enterprises.

  • Façade Matching Grant | 50% matching grants up to $50,000 for facades of commercial buildings on Woodward Ave.
  • Building Improvement Loan Program | Provides loans at 2 points below prime for 5 year terms on certain commercial buildings on Woodward.  Click Here for more information.

Invest Detroit:

For the seasoned developer or business owner seeking the added capital to make a deal work.

  • Detroit Investment Fund| The DIF provides gap financing intended to leverage owner equity so that the transaction merits traditional bank/senior lender financing. Investments in strategic projects are considered when potential exists for a significant long-term, clear benefit to the economic development of Detroit that would likely not be completed without the DIF.   Click Here for more information.
  • Urban Retail Loan Fund | The Detroit Urban Retail Loan Fund (URLF) is a revolving loan program intended to stimulate economic growth and support for residential and neighborhood development in Detroit’s Greater Downtown area by providing loans to small- and medium-sized retail, service, and storefront businesses. These businesses, in turn, will provide necessary goods and services to the neighborhood, create and retain jobs, and promote a high quality of life.   Click Here for more information.
  • Predevelopment Funds | Predevelopment Funds are intended to act as a catalyst for commercial, residential and mixed-use development projects in targeted areas in the City of Detroit.  Click Here for more information.
  • New Market Tax Credit Fund | The New Markets Tax Credit (NMTC) Program attracts private businesses and development by offering tax credits worth 39% of the value of the investment in low income communities, claimable over seven years.  Click Here for more information.
  • First Step Fund | The First Step Fund represents a partnership of the Invest Detroit Foundation, TechTown and Ann Arbor SPARK intended to support a revolving loan pool to provide financing to emerging and newly-formed small businesses in southeast Michigan that have successfully completed a training program through a qualified regional business incubator/accelerator.   Click Here for more information.

Other Capital Funding

A few of our favorites. 

  • 21st Century Jobs Fund | Signed into law in 2005, the Fund provides support for high-tech research and commercialization opportunities in Michigan.
  • Oracle Capital Partners, LLC | A private equity firm that invests in minority owned businesses in Michigan.  Investments range from $2-3 million.
  • Great Lakes Angels | A not-for-profit corporation that invests in Midwest companies.  Investments range from $50,000 to $250,000.
  • MEDC Capital Access Program | Uses small amounts of public resources to generate private bank financing, providing small Michigan businesses access to bank financing that might not otherwise be available.
  • Enterprise Detroit | Enterprise Detroit is a nonprofit organization that provides loans and technical assistance to small businesses in Detroit.  Drop them a line: 313-886-2163.