Funding

DIRLF is a citywide program for fixed-asset financing, which is administered by the DEGC. Applications are evaluated by the DEGC based upon the proposed borrower’s ability to repay and the potential impact of the proposed project on Detroit’s economy. DIRLF funds may be used for up to 40 percent of the costs of an eligible project, to a maximum of $200,000. The remaining 60 percent may be provided by a private lender, the borrower — or both. The borrower may be required to pledge certain assets not connected with the project and/or personal assets. The loan term(s) may vary, but in no event shall the term(s) exceed the useful life of the financed asset. The borrower shall also reimburse the DEGC for all out-of-pocket expenses, including but not limited to legal costs, recording fees and filing fees.

The DEGC Recovery Assistance Fund is a city-wide program for small to mid-sized Detroit businesses and is administered by the DEGC. The fund is intended to address the needs of Detroit businesses impacted by the COVID-19 pandemic. All potential borrowers must demonstrate the negative impact of COVID on their business. Eligible businesses may receive between $50,000 and $500,000 to be used for expenses such as payroll, rent payments and expenses to sustain and grow operations.  A 10-percent equity infusion is required to receive a flexible, low- interest rate with terms of from 5 to 15 years. The borrower is required to reimburse the DEGC for all out-of-pocket expenses, including but not limited to, legal costs, recording fees and filing fees.

The Small Business Loan Transaction program was established by the City of Detroit’s Downtown Development Authority (DDA) to assist existing/future building owners, tenants, and business owners located within the Downtown Development Area No.1. This revolving loan program provides funds for the construction, redevelopment or improvement of real property to owners and tenants. In special cases, it provides working capital for new and existing businesses. Loans issued under the SBLT program supplement private investment and require an applicant to secure 50 percent of the cost of a project through private sources. SBLT loans are available up to a maximum of $200,000 per building, tenant or business and are typically offered at below market interest rates.

The Housing/Office/Retail Development Program was established by the City of Detroit’s Downtown Development Authority (DDA) to stimulate additional residential and commercial activities in the Downtown District. This revolving loan program provides funds for the construction, redevelopment or improvement of real property located within the Downtown Development Area No. 1. To qualify for this program, an applicant must be either the property owner or — for certain cases — the tenant in a building located in the Downtown Development Area No. 1. Loans issued under this program supplement private investment and generally require at least a 2:1 ratio of private to public funds. The actual terms and conditions of the loan will be negotiated on a project-by-project basis.

The Residents/Real Estate loan fund was established by the EDC to foster greater investment in the real property rehabilitation projects by City of Detroit residents. All Resident/Real Estate loans are limited to real property rehabilitation projects to be owned, operated and financed by City of Detroit residents. City of Detroit resident ownership is defined as a minimum of 60-percent ownership belonging to a resident with a minimum of two years of residency within the City of Detroit. These loans are limited to a maximum of $750,000 or 40-percent of project costs, whichever is less. All loans are subject to standard credit underwriting as specifically detailed in the EDC’s Credit Policy Manual.

The National/Regional/ Retail/Restaurant Loan Fund was established by the EDC to help foster investment in national or regionally recognized retail and restaurant ventures. Loans are limited to a maximum amount of $500,000 or 40-percent of project costs, whichever is less. All loans are subject to standard credit underwriting as specifically detailed in the EDC’s Credit Policy Manual.

The Non-Affiliated Retail/Restaurant Program was established by the EDC to foster investment in fill-in ground floor retail/restaurant ventures. Loans are limited to a maximum of $200,000 or 40 percent of project costs, whichever is less. All loans are subject to standard credit underwriting as specifically detailed in the EDC’s Credit Policy Manual.

In order to qualify, borrowers must be able to prove ownership or demonstrated management responsibility for similar ventures. They must also have a valid license/operating agreement for the proposed venture, as well as demonstrated financial capacity to complete build-out and provide necessary operating capital for a minimum of one year.