The Michigan Minority Supplier Development Council is making $100 million in liquidity funding available to minority-owned businesses across Metro Detroit.
The Minority Business Access Fund is a loan vehicle for small- and medium-sized businesses in need of capital to get them through a revenue hiccup and set the stage for more growth. The $100 million is expected to have legs beyond its first year.
"If we're successful in getting $100 million out in the first year we will be able to get $100 million out there again in the second year," says Louis Green, president of the Michigan Minority Supplier Development Council.
The
Minority Business Access Fund expects to make 75 to 100 loans in its first year. The recipients are expected to be all kinds of minority-owned companies, such as multi-million dollar automotive suppliers and family-owned businesses.
Liquidity financing often helps companies bridge the gap between filling and order and collecting the revenue if the customer can't pay on time. Liquidity financing often pays a critical role in enabling the borrower to pay its bills and make payroll. Minority-owned firms have long struggled with obtaining loans from traditional sources, such as banks.
Source: Louis Green, president of the Michigan Minority Supplier Development Council
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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