Detroit Development Fund expands economic development efforts, supports entrepreneurs with $2.5 million from Knight Foundation – Knight Foundation
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Detroit Development Fund expands economic development efforts, supports entrepreneurs with $2.5 million from Knight Foundation

DETROIT – Oct. 21, 2015 – The Detroit Development Fund today announced a plan to extend support to early-stage retail and creative businesses in the city and advance its mission to revitalize economically distressed areas in Detroit with $2.5 million from the John S. and James L. Knight Foundation.

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Established in 1996, the Detroit Development Fund has made $37 million in loans, created or retained 1,600 jobs and financed the renovation of 1,400 units of affordable housing. They have also provided over $500,000 worth of technical assistance to Detroit businesses, contractors and rehabbers.

With Knight funding, the Detroit Development Fund aims to provide more loans and technical assistance to small businesses and real estate developers, with a particular focus on minority and female entrepreneurs. They will also use Knight’s investment, along with other support to increase capital and earned income to grow and increase sustainability.

“We have made great progress over the last several years helping to ignite Detroit’s community of entrepreneurs,” said Ray Waters, president of the Detroit Development Fund. “Knight support allowed us to expand our programs in Detroit and this additional funding will be an important part of our continued growth.”

“Creating a strong local pipeline for small business growth in Detroit is vital to its transformation,” said Katy Locker, Knight Foundation program director for Detroit. “With more capacity, Detroit Development Fund has the potential to expand economic opportunity in our city and support the people who have the ideas and energy we need to progress and grow.”

Knight originally made the $2.5 million available to the fund as a low-interest loan. Converting the program-related investment to a grant will strengthen the fund’s balance sheet, allowing it to leverage the support to attract more capital and expand its activities.

Support for the Detroit Development Fund forms one part of Knight Foundation’s efforts in Detroit to attract and keep talented people, expand economic opportunity and create a culture of engagement. Since 2008 Knight has pledged more than $80 million to Detroit, including a $19.25 investment in the arts announced in October 2012.

About the Detroit Development Fund

Detroit Development Fund is a non-profit, 501(c)(3) organization and a certified community development financial institution, incorporated in the state of Michigan. Detroit Development Fund provides loans and technical assistance and delivers its products and services with the goals of revitalizing businesses and neighborhoods in Detroit, Michigan, creating economic equity, and promoting a healthy environment. The organization’s stated mission is “To improve the quality of life in underserved Detroit neighborhoods and for Detroit residents.” For more information, contact Ray Waters at [email protected].

About the John S. and James L. Knight Foundation

Knight Foundation supports transformational ideas that promote quality journalism, advance media innovation, engage communities and foster the arts. We believe that democracy thrives when people and communities are informed and engaged. For more, visit knightfoundation.org.

Contacts:

Ray Waters, President, Detroit Development Fund, 313 784 9567,  [email protected]

Anusha Alikhan, Director of Communications, John S. and James L. Knight Foundation, 305-908-2677, [email protected]