FOR IMMEDIATE RELEASE
Aug. 10, 2020
Charlotte Fisher / M: 313-303-8869 / O: 313-237-4603 / firstname.lastname@example.org
Tracy Daniel / M: 248-835-5496 / O: 313-324-7874 / email@example.com
Detroit Economic Growth Corporation receives $2.9 Million in CARES Act Funding to Capitalize Revolving Loan Funds to Help Small Businesses in Detroit
- U.S. Department of Commerce to invest $5.7 million to aid Michigan small businesses.
- Detroit Economic Growth Corporation to receive $2.9 million to further assist small businesses in Detroit impacted by COVID-19.
DETROIT— The Detroit Economic Growth Corporation (DEGC) will receive a $2.9 million EDA CARES Act Recovery Assistance grant to capitalize and administer a Revolving Loan Fund (RLF) to make loans to coronavirus impacted small businesses in Detroit. The EDA grant will strengthen DEGC’s ability to sustain and grow Detroit businesses through a variety of services that help businesses navigate economic trends, access financial resources, and create robust business models that can adapt to changes in the market.
The Economic Development Administration (EDA) announced it is awarding a total of $5.7 million in CARES Act Recovery Assistance grants to capitalize and administer RFLs that will provide critical gap financing to small businesses and entrepreneurs adversely affected by the coronavirus pandemic across Michigan, including the $2.9 million in Detroit.
“Small businesses are the backbone of our economy both nationally and here in Detroit, providing jobs, tax revenue and essential services,” said DEGC President & CEO Kevin Johnson. “There will be no economic recovery for our city without these critical businesses and it is an imperative part of our efforts to continue to find the funding and provide support during, and following, this pandemic.”
The Michigan Small Business Restart Program is the latest in a series of efforts through which the DEGC has administered funding to Detroit small businesses. Earlier this year, the DEGC, Detroit City Council and Economic Development Corporation of the City of Detroit created a $4 million relief fund that has helped more than 730 small businesses survive the impact of the COVID-19 crisis.
About the Detroit Economic Growth Corporation (DEGC)
Detroit Economic Growth Corporation (DEGC) is a non-profit organization that serves as the lead implementing agency for business retention, attraction and economic development initiatives in Detroit. DEGC is led by a board comprised of business, civic, labor and community leaders. Its staff provides services for key public authorities that offer tax credits and other forms of financing for projects that bring new jobs or economic activity to the city. DEGC also manages important initiatives to support small businesses, such as Motor City Match and Motor City Re-Store, and offers programs for existing businesses to enter into the global market, like Built in Detroit.