Invest Detroit is a leading source of private sector gap financing and utilizes a variety of funding tools through managed for-profit and non-profit targeted funds to support economic and community development in underserved communities primarily in the City of Detroit.
Invest Detroit and its related entities were formed to facilitate funding from the public, private and foundation sectors and to address targeted needs of the communities it serves. Representing $125 million in funds and tax credits, Invest Detroit serves as a platform intended to meet a broad range of financing needs to support business expansion and real estate development, the creation and retention of jobs, and the revitalization of distressed areas.
Invest Detroit represents the vision of the Board of Directors and management of the Detroit Investment Fund (DIF), which was created and funded in 1995 by members of Detroit Renaissance, now known as Business Leaders for Michigan. In 2010, the DIF Board and management team enhanced and transitioned the capabilities of the DIF to create Invest Detroit, which serves as an umbrella entity for the DIF and other for-profit and non-profit managed funds.
Invest Detroit invests in eligible projects or companies from several different funding sources.
The Detroit Investment Fund provides loans for manufacturing and distribution companies, commercial real estate development and strategic projects to assist owners/developers in meeting the financing requirements of traditional lenders.
» More info
New Markets Tax Credits of $40 million complement Invest Detroit’s activities and allows it to expand its lending for the rehabilitation of older buildings including the development of retail space in low-income communities in Detroit. The NMTC Program attracts private businesses and development by offering tax credits worth 39% of the value of the investment in low-income communities, claimable over seven years.
» More info
Lower Woodward Housing Fund is a revolving loan pool intended to promote the development of a downtown neighborhood through loans to qualified residential and mixed-use projects that together, will significantly increase the residential population of Detroit’s downtown core.
» More info
Predevelopment Loan Funds are intended to act as a catalyst for commercial, residential and mixed-use development projects in targeted areas of Detroit. Predevelopment financing assists both individual developers and community organizations by providing funding for costs incurred in the early stages of a project, such as environmental studies or appraisals that facilitate the project’s pursuit of traditional financing.
» More info
The Detroit Urban Retail Loan Fund is a revolving loan program intended to stimulate economic growth and support for residential and neighborhood development in Detroit’s Greater Downtown area by providing loans to small- and medium-sized retail, service, and storefront businesses. The URLF’s targeted area is the Greater Downtown including Corktown, Downtown, Eastern Market, Midtown, New Center and Riverfront.
» More info
The First Step Fund represents a revolving loan pool intended to provide emerging and newly-formed small businesses in SE Michigan that have participated in a qualifying incubator program, with access to capital, focused mentoring, and a network that will foster demand and create opportunities.
» More info
The economic development efforts of Invest Detroit have resulted in the following: