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

October 24, 2019

Reflections from Philanthropy Forward's First Cohort

Philanthropy Forward: Leadership for Change is a CEO fellowship program created by Neighborhood Funders Group and the Aspen Institute Forum for Community Solutions. The program's first cohort started in October 2018 in furtherance of building and advancing a shared vision for the future of philanthropy.

Hear perspectives from members of the first cohort as they reflect in this video on their work together as strategic thought partners, addressing philanthropy's most challenging issues and aligning to build a financial engine for social change.

2018 - 2019 Philanthropy Forward Cohort

A grid with individual photos of each of the 20 members of Philanthropy Forward's 2018-2918 cohort..

Click here for participant bios

  • Dimple Abichandani, General Service Foundation
  • Sharon Alpert, Nathan Cummings Foundation
  • Elizabeth Barajas-Roman, Solidago Foundation
  • Ned Calonge, The Colorado Trust
  • Irene Cooper-Basch, Victoria Foundation
  • Farhad A. Ebrahimi, The Chorus Foundation
  • Nicky Goren, Meyer Foundation
  • Justin Maxson, Mary Reynolds Babcock Foundation
  • Joan Minieri, Unitarian Universalist Veatch Program at Shelter Rock
  • Maria Mottola, New York Foundation
  • Mike Pratt, Scherman Foundation
  • Jocelyn Sargent, Hyams Foundation
  • Pamela Shifman, NoVo Foundation
  • Starsky D. Wilson, Deaconess Foundation
  • Steve Patrick, Aspen Institute Forum for Community solutions
  • Dennis Quirin, Raikes Foundation
September 10, 2019

For Love of Humankind: A Call to Action for Southern Philanthropy

Justin Maxson, Executive Director of the Mary Reynolds Babcock Foundation, calls on fellow funding organizations based in the South to respond to the federal government's anti-immigrant rhetoric and policies with three concrete actions. This post was originally published here on the foundation's website.

Justin was part of the first Philanthropy Forward: Leadership for Change Fellowship cohort, a joint initiative of Neighborhood Funders Group and The Aspen Institute Forum for Community Solutions. The Mary Reynolds Babcock Foundation, which strives to help people and places move out of poverty and achieve greater social and economic justice, is a member of NFG.


 

Justin MaxsonWe are issuing a clarion call to Southern philanthropic organizations to respond to the manic drumbeat of anti-immigrant rhetoric and cruelty coming from the White House. This month began with a mass shooting targeting the Latinx community. Days later, massive raids tore apart hundreds of families and destabilized Mississippi communities but levied no consequences for the corporate leadership that lures vulnerable people to work in grueling, dangerous conditions. It is astounding that since those events, with the resulting fear and trauma still reverberating through immigrant communities across America, the administration has: 

  • repeated its intention to end birthright citizenship, a 14th Amendment guarantee that babies born on American soil are citizens. 
  • attempted to terminate the Flores Agreement, which sets standards for the care of children in custody. This would allow the administration to detain migrant families indefinitely in facilities where children are dying of influenza, yet flu shots are not administrated, where children are sexually assaulted, where soap, toothbrushes, human contact and play are not standard, and where breastfeeding babies are taken from their mothers. Child separation is known to cause permanent psychological trauma and brain damage.
  • announced changes to the so-called “public charge rule” to make it harder for legal immigrants to secure citizenship if they use public assistance. As our partners at the Center on Budget and Policy Priorities argue, this change would cause many to “forgo assistance altogether, resulting in more economic insecurity and hardship, with long-term negative consequences, particularly for children.” Further, the decision “rests on the erroneous assumption that immigrants currently of modest means are harmful to our nation and our economy, devaluing their work and contributions and discounting the upward mobility immigrant families demonstrate.”

There was also a recent effort to effectively end asylum altogether at the southern border. And despite the Supreme Court ruling blocking the citizenship question from the 2020 census, advocates believe the debate will depress response rates. As we wrote earlier this month, this administration’s animus against immigrants and increasingly aggressive ICE actions are compounding the devastating effects on communities across the country. 

Why Southern philanthropy? 

An analysis of recent grantmaking by the National Committee for Responsive Philanthropy found our region has deportation rates five times higher than the rest of the country, yet Southern pro-immigrant organizations receive paltry philanthropic funding. Barely one percent of all money granted by the 1,000 largest foundations benefits immigrants and refugees, and even that money doesn’t go to state and local groups that are accountable to grassroots and immigrant communities. Organizations in Southern states receive less than half of the state and local funding of California, New York and Illinois. 

Where to begin? 

Speak up. As Desmund Tutu taught us, “If you are neutral in situations of injustice, you have chosen the side of the oppressor.” Use your institutional voice to influence decisionmakers.

Examine your foundation’s policies. Find out if your endowment is invested in private detention centers. Consider how supporting organizing, power building and policy advocacy could advance your mission. NCRP has more recommendations in its report.

Give generously. Our partners at Hispanics in Philanthropy have curated a list of organizations helping the families affected by the raids across Mississippi. Our partners at Grantmakers Concerned with Immigrants and Refugees have compiled a list of ways to help, from rapid response grants to long-term strategies. 

Many of the Babcock Foundation’s grantee partners are doing more and more immediate protection work, stretching themselves thin and often putting themselves at risk. They are keeping families intact in the short term while building power for the long term, so history will stop repeating: 

If you know of more resources, please share them. If you’d like to learn more about the organizations on the ground across the South – or think about ways we can do more together – contact us. We are always looking to learn and act in alignment with our fellow funders toward a shared vision of a strong, safe, welcoming and equitable region. 

Activist Jane Addams said, “The good we secure for ourselves is precarious and uncertain until it is secured for all of us.” Regardless of a foundation’s mission, abject cruelty surely undermines it. It also undermines the most basic tenet of philanthropy, which literally means “love for humankind.” We see no love in this administration. It’s up to all of us to spread it.