Liberty Bank and Trust Company is providing $4 million to finance the Entrepreneurs of Color Fund, a loan fund that helps black-owned businesses in Detroit, where the fund is based.
“Liberty Bank is acutely aware of the need to provide capital to small businesses,” said Drextel Amy, President of Liberty’s Michigan Region, in a news release. “Entrepreneurs of color often don’t have consistent access to capital to fuel their basic operations and growth. Minority-owned businesses in Detroit are adding to the growth of Detroit and more specifically, the neighborhoods. It is crucial that we provide the capital to allow these entrepreneurs of color to participate and help in the economic rebirth of Detroit.”
JPMorgan Chase, W.K. Kellogg Foundation, and Detroit Development Fund created this fund as a part of Chase’s $150 million commitment to Detroit’s economic recovery, made in 2015. Kellogg Foundation’s initial $3.5 million commitment was a part of its larger annual investment of about $25 million.
“As our Entrepreneurs of Color Fund continues to create jobs and bring much-needed goods and services to Detroit’s neighborhoods, we’re thrilled that Liberty Bank has committed to the Fund this year,” said Ray Waters, President of Detroit Development Fund. “We have been more than pleased by the impact this fund has had on local small businesses and our community’s economy.”
The loans offered by the fund range from $50,000 to $200,000. They also offer business assistance to Detroit entrepreneurs of color. So far the fund has lent or approved $5.7 million to more than 54 minority small businesses, creating or preserving a total of 750 jobs. 54 percent of the loans support businesses owned by minority women.