October 12, 2015

JPMorgan Chase, Detroit Development Fund and the W.K. Kellogg Foundation Announce $6.5 Million Loan Fund for Detroit’s Minority-Owned Small Businesses

Entrepreneurs of Color Fund will provide greater economic opportunity for small businesses that lack access to credit and primarily serve Detroit’s neighborhoods.

September 15, 2015 (Detroit) – The Detroit Development Fund (DDF), JPMorgan Chase & Co. and the W.K. Kellogg Foundation (WKKF) today announced a new $6.5 million lending program for Detroit businesses owned by entrepreneurs of color and businesses that primarily hire people of color. The Entrepreneurs of Color Fund will boost economic opportunity for minority-owned businesses in Detroit by providing them with greater access to capital and business assistance, allowing them to grow, hire local and further contribute to the city’s recovery.

Facilitated by DDF, a Michigan 501(c)3 Community Development Financial Institution (CDFI), the Fund will seek to provide financing for general contractors, small retailers and other neighborhood service businesses along with many other types of businesses. The Fund will help businesses that traditionally have lower credit quality, lack access to capital and staffing and primarily serve Detroit’s neighborhoods.

Small businesses have historically been at the heart of economic growth in Detroit, and they have the potential to reduce unemployment and expand opportunity for Detroiters. There are approximately 32,000 minority-owned small businesses in Detroit, according the U.S. Census. This ranks Detroit as the fourth largest U.S. city for the number of minority-owned businesses. Yet, despite their importance to the economy, recent research by Michael S. Barr, Professor of Law at the University of Michigan, says minority-owned businesses rely significantly more on investments of personal or family wealth than on outside debt or equity.

"For Detroit's comeback to be a true success, there must be opportunity for the Detroiters who have stayed,” said Detroit Mayor Mike Duggan. “This new program fits perfectly with what our administration is doing, through Motor City Match and other efforts, to make sure Detroit residents who want to start a business in their city have access to the capital and support they need to be successful."

“The Entrepreneurs of Color Fund is very exciting for us and the Detroit small businesses it will support,” said Ray Waters, President, DDF. “The unique structure of the Fund allows DDF to provide a variety of lines of credit and loans to accommodate the needs of entrepreneurs of color. “We are pleased to facilitate the pilot program and are grateful for the support of JPMorgan Chase and the W.K. Kellogg Foundation. We look forward to growing our lending in minority communities.”

Through a $3.5 million grant provided by the JPMorgan Chase Foundation, as part of its $100 million commitment to the Detroit’s economic recovery, and $3 million in program-related investments from the Kellogg Foundation, the Entrepreneurs of Color Fund will provide short and long-term loans. Loan sizes will vary, but the average loan will range from $50,000 to $150,000. The Kellogg Foundation developed and initiated the Fund because of its long-standing commitment to equity and to Detroit.

Businesses receiving financing will be able to use the capital to expand, finance equipment, address short-term cash flow needs and provide contractor lines of credit. The Fund will also provide small business loan recipients with technical assistance such as networking, marketing, business plan development and cash flow management. Eligible small businesses must be majority owned by people of color or have more than half their workforce made up of people of color. During implementation of this initiative, DDF will also work with Max M. & Marjorie S. Fisher Foundation’s Detroit entrepreneurship programming efforts.

“Neighborhood businesses are critical to Detroit's comeback, but many need access to the right capital to grow and thrive,” said Janis Bowdler, Head of Community Development for Global Philanthropy, JPMorgan Chase. “The Entrepreneurs of Color Fund is a unique approach that combines flexible financing and services to strengthen continued business growth in Detroit’s neighborhoods.”

“The Kellogg Foundation is not new to the idea of creating access to capital for people of color,” said La June Montgomery Tabron, WKKF’s President and CEO. “We know that investment in people of color is essential for equitable and effective urban development and this nation's sustained economic dominance. We are proud partners with Detroit Development Fund, JPMorgan Chase and others who will join us to improve the economic opportunities for entrepreneurs, who are also parents, to better support their families and ensure success for Detroit’s kids.”

Funding will allow the Entrepreneurs of Color Fund to provide loans and technical assistance and establish a loan loss reserve. The reserve will allow DDF to expand its lending criteria and help Detroit small businesses that traditionally did not qualify for a loan.

“Detroit’s strength has always come from entrepreneurs who have a great idea and can build that into a business that thrives and creates jobs,” said U.S. Senator Debbie Stabenow. “This new public-private partnership will help business owners succeed and grow, creating jobs and opportunity across the region.”

Michael Barr’s recent research, Minority and Women Entrepreneurs: Building Capital, Network, and Skills, published by the Hamilton Project of the Brookings Institution, calls for greater support for minority-owned and female-owned small businesses.

“Minority-owned businesses, including those in Detroit, often lack access to credit, to essential skills needed to survive and grow, and to business networks for mentoring and new business opportunities,” said Michael S. Barr, Professor of Law at the University of Michigan. “Increasing business formation by minority and female entrepreneurs is critical to improving the rate of entrepreneurship for the country as a whole, and generating new growth and jobs.”

Interested Detroit small businesses can learn more about eligibility by contacting the Detroit Development Fund at (313) 784-9547 or vholsey@detroitdevelopmentfund.com.

About the Detroit Development Fund

DDF was established in 1996 with a mission to “improve the quality of life for residents in underserved Detroit neighborhoods.” A 501(c)(3) and certified as a CDFI, DDF provides term loans and lines of credit to small businesses, small contractors, and for-profit and nonprofit affordable housing developers. DDF currently manages $23 million in loan capital. Since lending activities began in 2002, DDF has closed over $36 million in loans to businesses in Detroit, which helped to retain approximately 1,200 jobs and created approximately 1,800 new jobs. Approximately 72 percent of DDF’s small business loans have been made to minority owned companies, and over 1,400 housing units were rehabbed as a result of DDF’s loans. DDF lending activities have leveraged over $200 million in public/private investments with more than $7 million in projects under management.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

About the W.K. Kellogg Foundation

The W.K. Kellogg Foundation (WKKF), founded in 1930 as an independent, private foundation by breakfast cereal pioneer Will Keith Kellogg, is among the largest philanthropic foundations in the United States. Guided by the belief that all children should have an equal opportunity to thrive, WKKF works with communities to create conditions for vulnerable children so they can realize their full potential in school, work and life. The Kellogg Foundation is based in Battle Creek, Michigan, and works throughout the United States and internationally, as well as with sovereign tribes. Special emphasis is paid to priority places where there are high concentrations of poverty and where children face significant barriers to success. WKKF priority places in the U.S. are in Michigan, Mississippi, New Mexico and New Orleans; and internationally, are in Mexico and Haiti. To learn more, visit www.wkkf.org or follow WKKF on Twitter at @wk_kellogg_fdn.

Media Contacts:

Detroit Development Fund: Ray Waters, President of Detroit Development Fund, 313.784.9547.

JPMorgan Chase: Steve O’Halloran, steve.ohalloran@chase.com, 302.282.5699

W.K. Kellogg Foundation: Dana Linnane, dana.linnane@wkkf.org, 269.969.2301

September 4, 2020

Strike Watch, Labor Day: Vonda McDaniel on Workers Redefining “Nash-Vegas” and Taking on Power in Tennessee

Earlier this summer, we had the fortune to sit down with Central Labor Council (CLC) of Nashville & Middle Tennessee President Vonda McDaniel. McDaniel gave us key insights – shared in this Strike Watch interview -  into the critical organizing led by food processing workers hard-hit in unsafe meatpacking plants in the region and throughout the US as the COVID-19 pandemic worsened.  But meatpacking is not the only place workers are rising up in the Nashville area – where organizations are redefining Black and migrant-led labor organizing in new and important ways.

As we honor the many essential workers on the front lines of our economy this Labor Day, FJE presents our continued conversation with Council President McDaniel. She shares below about important new organizing across retail, urban development, healthcare and more to ensure the growing “Nash-Vegas” actually works for local communities, especailly as Tennessee sped to re-opening. In partnership with NFG’s Amplify Fund, we will be dialoguing more deeply about groundbreaking work in Nashville in our upcoming Virtual Learning to Nashville September 21-23, 2020. We encourage funders to register here and join us as we meet with Stand Up Nashville and The Equity Alliance, and of course, McDaniel and the CLC – and engage with film, music, and more to get a sense of the critical work in this changing Southern economic hub and its implications for worker power across the US.

There’s been a lot of attention to the South in regards to re-opening and the effects of COVID-19. We’ve talked a bit about the important crisis in meatpacking in central Tennessee. How have workers been responding and organizing in Nashville more broadly?

Nashville has become an East Coast entertainment hub - they call it “Nash-vegas” right?  And so hospitality is really the growth industry in the city, alongside health care.  The hospitality workers, mostly in restaurants and some in hotels, have been organizing. In fact some have started to reached out to Restaurant Opportunities Center (ROC) and have started a Nashville (Music City) chapter.  As we were reopening the economy, the press wanted to know what restaurant workers were feeling about it. What the workers saw were the dangers, and we've been working with them. [ROC Music City – a Stand Up Nashville partner - has also recently brought to light individual businesses that were hiding COVID-19 exposure, and won protections for workers in these small businesses.] It's really exciting to see the growth opportunity there in terms of organizing.

In health care, at Vanderbilt University Medical Center they didn't have enough staff when COVID hit so the company brought in temporary workers. The workers – the nurses - demanded that they get hazard pay because they saw that the temps were getting paid more. So we've seen collective action there.

In the dollar stores - both Family Dollar and Dollar General - because they cram so much cheap merchandise in the stores, there’s not a lot of room for social distancing. In many cases they're not providing the Personal Protective Equipment. When they bring their own mask we had reports that workers are told not to wear them – even when they're the homemade mask that they bring. Those workers have created a Facebook group and are really beginning to organize here and in other places. They have even reached out to those workers that have unionized In New Orleans to talk about what the differences in are in those stores and what they need to do to get a union in here, in Tennessee. [Dollar General staff in conversation with United Food and Commercial Workers Local 655 and speaking out about hazard pay were also targeted for firing by the company.]

One of the big issues in the South (and the Midwest) is the way conservative state governments have sought to stop everything from minimum wages to abortion through their power of pre-emption. How is this playing out in Nashville in this time?

Especially in this moment COVID-19 has presented a lot of challenges for our local government. Because of that there are things that they cannot do like paid sick leave, like property tax freezes. We're in a moment where our economy was based on sales tax which has gone to nothing, and so the revenue streams are just not what they need to be. In order to keep essential services running they have to raise property taxes, but all of the tools that local governments have to try to help in this moment have been stripped by state preemption. We've been preempted over and over again. We tried to pass living wage ordinance. We passed it; it was preempted. We passed on a ballot measure - local hire - so that we could hire local workers on public projects. That was passed by the voters of the county; it was preempted.

Those in state power have been using preemption to prevent cities from being able to do the things that they consider important to help their citizens. So we have a coalition across the state that has come together, that has been trying to run a campaign to put pressure on the governor to use his emergency powers to take action and make sure that at least in this moment that preemption is not an issue. The campaign gives us an opportunity to talk about what preemption is and how it's impacted our ability to help the residents of Nashville. I know it will continue beyond this pandemic and will only become more important to confront.

How do workers fit in the bigger picture of a changing Nashville, and the unprecedented development the city has been experiencing?

Every time you turn on the TV, they say Nashville is a city on the rise. But those in charge have been building it on the cheap. [In a telling incident this June, a 16 year old Latinx worker died falling off a scaffolding, building a new development in Nashville, with no safety harness and questionable safety practices by the company.]

"Every time you turn on the TV, they say Nashville is a city on the rise. But those in charge have been building it on the cheap. "

We have been able to work with our building trades affiliates to create an apprenticeship readiness program to recruit folks out of what they call the “promise zones” and give them the skills necessary to be successful in the federally registered apprenticeship programs and the union apprenticeship programs.  Our Central Labor Council has been a partner with that, and it's been interesting because in building that work, we've created a table that has faith partners working with us. The ecosystem is really coming together, and most of the recruits for our last class came from our faith partners. We've been able to develop relationships with the Interdenominational Ministers Fellowship which is the African-American ministers fellowship at Vanderbilt Divinity School. They recruited them out of the churches: the ministers knew they had returning citizens in their congregation that really needed a path to a different life. In reaching the immigrant community we had the Catholic Labor Network which was also really instrumental in helping us to really build a very diverse class also in our Multi-Craft Core Curriculum (MC3) program.

Stand Up Nashville, with the CLC is part of, along with a few of our unions and Nashville Organized for Action and Hope (NOAH), have been able to really move on the policy side to increase their presence and power for working families.

How have you resourced this significant growth in labor and community organizing?

You know, it's constant.  We are really trying to organize and build, and we really feel like that in Nashville we have set the table for growth for workers. We're excited about it - we have been trying to build infrastructure here for at least the last six to eight years.

But we find ourselves trying to having to chase funding in order to continue to do the work. The folks that oppose us, they don't have those barriers.  They have sustained funding for long periods of time - it really doesn't even matter whether they're successful and accomplish the benchmarks. We really have not had that kind of investment on our side, so we have to spend a great deal of your capacity right now on that.  Our CLC is in fundraising cycle; the reason is we have staffed up a level. We went from an all-volunteer organization to one with three staff. I mean, that's not a lot, but in order to be able to do and work with the community partners, keep up with what's happening in our local government, cultivate partnerships and organize you know that takes resources – the kind that it is very difficult to find funding for. We continue to look for ways to get investment in the work because we feel like that that, over time, there is definitely a return on that investment. You can see the growth in terms of all of the varied projects that people are working on that are part of our network, particularly in this moment.

Why is it important for those interested in economic justice to pay attention to Nashville at this moment?

You know there's a saying that however the South goes so goes the nation. Whatever is really bad in the South - if we cannot improve it here then eventually, it's going to trickle to the rest of the country. History has shown us that. Folks really should understand that what we do in the South, in terms of organizing, in terms of politics, in terms of all the things that we need to change in the economy - if we can't make change on the issues that matter in the South, then how will me make national change? This is a test ground for what happens across the country. But we are movinig to make that change.

*Photo Credit: Nashville CLC.

FJE’s Strike Watch is a regular blog and media series dedicated to providing insight on the ways in which grassroots movements build worker power through direct action. Our ultimate goal: inform philanthropic action to support worker-led power building and organizing and help bridge conversations among funders, community and research partners. We are grateful and acknowledge the many journalists and organizations that produce the content we link to regularly, and to all our participants in first-hand interviews. Questions on the content or ideas for future content? Reach out to robert@nfg.org

August 4, 2020

A Letter from IRSG Members in Honor of Isabel Arrollo

Dear Friends,

Isabel smiling and reaching up to a fruit tree in an orchard.On May 16, 2020, we lost a fierce, beloved leader in California’s Central Valley, Isabel Arrollo. Isabel was the Executive Director of El Quinto Sol de America, an organization founded by her mother, Irma Medellin, based in Lindsay, California. Isabel’s passion and strong strategic lens helped grow El Quinto Sol into a driving force for change in the Central Valley. From her early teenage years, Isabel worked at her mother’s side, lifting up community voices in local and state decision-making, and supporting residents across Tulare County’s unincorporated communities by connecting youth to arts and cultural work, and uplifting the tools to build civic participation and political power in the community. In recent years, her passion and vision to create an Agroecology Center in the Central Valley has lit a flame — one that we need to keep aglow.

In addition to the collective deep grief and sadness at this time, we are also angry and frustrated by the accumulated conditions of environmental, economic, and racial injustices that facilitated the process of her passing. We understand that extractive systems like industrial agriculture, subsidies that perpetuate land tenureship rooted in the forced migration of peoples and Beings, the exploitation of workers, and the polluting of the water she bathed in and the air she gasped onto holding onto the hope of survival and thriving of her people and their knowledge, are responsible for her illness of Valley fever, her death, and for the displacement of life of her future lineages. This racially targeting phenomenon is a form of prolonged violence, and as allies and co-conspirators in the struggle for justice, we need to show up to defend our neighbors and human relations.

We honor the life labor Isabel held as an organizer and community member, which went far beyond her role as Director at El Quinto Sol. She supported her community every day, and also invited folks outside of the community to witness and learn about the issues that are often invisibilized via the dust of pesticides and toxins, and the shadows of the fields. This included hosting funder tours for our philanthropic community during which she generously extended her energy to educate visitors and allies on the intersection of issue areas, and with great skill found multiple ways to illuminate the work for a wider audience, and moved us toward a tangible transition of wealth and power. She did this even while her health was failing; she did it for the livelihood and wellness of her people and her community.

Losing Isabel is heartbreaking, and our hearts are with her family, her co-workers at EQS, her wide and diverse network of friends and co-conspirators, and the many folks she mentored and stood beside every day, including youth and mixed documentation status farmworker communities. She dedicated her life to protecting the health of our air, water, soil, and peoples. Isabel was a brilliant visionary who helped lead the Community Alliance for Agroecology, and held such beautiful, powerful dreams for transforming the Central Valley’s food and farming systems from the ground up. Isabel will be forever remembered as a fierce advocate and as our caring and thoughtful friend who always made time to listen and offer words of encouragement, joy, and laughter. In this global moment of so much pain, loss and fear, we are called to action to uplift the voice and vision of leaders like Isabel, and carry them forward.

We ask that you seriously and thoughtfully consider these two requests:

  1. Isabel speaking to a group in front of a neighborhood bus stop.Make a contribution at this moment, at whatever level, to the environmental health and justice — and agroecological — organization, El Quinto Sol. The contact there is Olga Marquez, olga@elquintosoldeamerica.org.
  2. Become a funder accomplice in achieving Isabel’s and others’ dreams in the San Joaquin Valley — join us in support of the creation of an Agroecology Training Center, by and for a collective of Latinx and Indigenous farmworking families, Indigenous people from the region, and other family farmers. El Quinto Sol, as well as other groups like the Community Alliance for Agroecology, Central California Environmental Justice Network (CCEJN), Foodlink Tulare County, Quaker Oaks Farm, and Central Valley Partnership are moving forward in their visioning and planning, and seek collaboration with funding partners, especially in this moment.

If you would like to learn more about El Quinto Sol and the Agroecology Training Center, or if you are interested in collaborating with us as we move forward, please reach out to one of us (contacts below).

In the meantime, read inspiring coverage of the work of El Quinto Sol here: https://civileats.com/2019/08/12/this-mother-daughter-team-is-building-new-leaders-in-californias-farm-country/
 

Thank you, and be well,

Paola Diaz (paola@11thhourproject.org)

Marni Rosen (marni@colibrigiving.com)

Sarah Bell (sarah@11thhourproject.org)

Kat Gilje (gilje@cerestrust.org)

Kassandra Hishida (kassandrahishida@allianceforagroecology.org)