Community Reinvestment Fund, USA (CRF) and ProsperUs Detroit, a Detroit-based nonprofit Community Development Financial Institution (CDFI), are partnering to announce a new initiative designed to support Wayne County’s small business landscape. Through this strategic partnership and grant support from the CDFI Fund’s CDFI Equitable Recovery Program (CDFI ERP), ProsperUs Detroit is launching a new loan program specifically designed for microenterprises within select zip codes across the county. This program offers flexible financing ranging from $10,000 to $50,000, with a 12-month interest-only period and the potential for up to 20% loan forgiveness of the remaining principal balance for businesses that fulfill specific criteria, including staying current on interest payments and completing a ProsperUs Detroit educational curriculum within the first year of receiving loan proceeds.
The program will inject $1.5 million in capital to support dozens of small businesses across the county. This investment aims to foster economic growth and stability in the region by providing vital funds to local entrepreneurs and strengthening community development, contributing to a vibrant economic future for Wayne County.
The program also features attractive terms, including a fixed 7% interest rate, tailored to meet the unique needs of small businesses, especially those with significant unmet capital needs located in low- to moderate-income communities that experienced disproportionate negative economic impacts from the COVID-19 pandemic. No minimum credit score or collateral is required to be eligible and loan proceeds can be utilized for various business needs such as working capital, refinancing existing debt, inventory, and marketing. Businesses in Wayne County are encouraged to reach out to ProsperUs Detroit to learn more about program eligibility.
“CRF’s commitment to distributing patient and flexible capital to under-resourced communities in Wayne County is transformative. With their support, ProsperUs Detroit is empowered to ignite economic vitality in areas long overlooked. Together, we’re not just building businesses; we’re constructing pathways to prosperity and sustainable growth, one entrepreneur at a time,” shared Paul Jones, Chief Executive Officer of ProsperUs Detroit.
Since becoming available in May 2024, the program has already served numerous small businesses across Wayne County, including Miss Eva’s Detroit, a luxury speakeasy in the Grandmont Rosedale neighborhood set to open in September 2024.
“Working with ProsperUs Detroit has been transformative for me and my business, Miss Eva’s Detroit,” said Jay Williams, owner of Miss Eva’s. “The loan process was smooth! The program will make a portion of my loan forgivable after just twelve months of on-time payments, which will make the capital even more affordable for a new business like mine. ProsperUs sees beyond the numbers and truly understands who I am as an entrepreneur. The additional support, from technical assistance to the on-site consultations, is invaluable. I’m excited to open our doors and contribute to creating a vibrant and safe community in the Grandmont Rosedale neighborhood.”
“CRF is proud to partner with ProsperUs Detroit on this impactful initiative as part of our mutual commitment to Wayne County communities,” said Alexis Dishman, SVP & Small Business Chief Lending Officer at CRF. “This innovative partnership utilizes the strengths of each organization to efficiently increase access to flexible capital and specialized services for local entrepreneurs, helping them grow, thrive, and create impact in the communities where they operate.”
For more information about this loan program, eligibility criteria, and to start the application process, please visit ProsperUs Detroit.
