Minority Recipients of JPMorgan Chase–Backed Entrepreneurs of Color Fund Awarded $325,000

Four Detroit-based minority-owned small businesses receiving $325,000 in loans and lines of credit will provide lighting, construction, and retail services to aid Detroit’s recovery from the neighborhoods to downtown. The lending is from the Entrepreneurs of Color Fund, made available through a $6.5 million commitment from the Detroit Development Fund, JPMorgan Chase & Co., and the W.K. Kellogg Foundation.

[Related: JPMorgan Chases Launches $6.5 Loan Fund For Detroit’s Minority-Owned Businesses]

The Entrepreneurs of Color Fund, which is facilitated by DDF, a Michigan 501(c)3 Community Development Financial Institution (CDFI), provides financing for Detroit-based neighborhood businesses and services with a goal of assisting businesses that lack access to traditional forms of credit and capital. Funding for the EOC Fund is provided by a $3.5 million grant from the JPMorgan Chase Foundation, as part of JPMorgan Chase’s $100 million commitment to the city of Detroit’s economic recovery, and a $3 million program-related investment from the WKKF.

“From the neighborhoods to downtown, Detroit’s success is tied to the success of its residents and growth of its businesses,” said Detroit Mayor Mike Duggan in a released statement. “There is incredible opportunity for small businesses here in Detroit, and this loan program from the Detroit Development Fund, JPMorgan Chase, and the W.K. Kellogg Foundation will ensure that businesses here have access to the resources they need to prosper.”

There are approximately 32,000 small businesses in Detroit owned by people of color, according the U.S. Census Bureau. This ranks Detroit as the fourth largest U.S. city for the number of minority-owned businesses. Yet, these businesses rely significantly more on investments of personal or family wealth than on outside debt or equity, according to recent research by Michael S. Barr, Professor of Law at the University of Michigan.

Related Story: JPMorgan Chases Announces Loan Fund For African American—Owned Small Businesses

The EOC Fund is designed to increase economic opportunity for underserved populations in Detroit by providing minority-owned businesses with greater access to capital and business assistance, allowing them to grow, hire locally, and further contribute to the city’s economic recovery.

“With the Entrepreneurs of Color Fund we are now able to provide the capital that Detroit’s small businesses need to grow and succeed,” added DDF President Ray Watters.  “We are grateful for the generous support of JPMorgan Chase and the W.K. Kellogg Foundation, which will allow DDF to increase its business support and lending programs for minority-owned businesses in Detroit’s neighborhoods.”

The four businesses receiving the inaugural round of funding include:

• Power, Lighting and Technical Services, Inc. (PLTS) — $100,000 Contractor Line of Credit and Loan. PLTS, located in Barton-McFarland on Detroit’s west side, provides electrical design and construction for commercial, industrial and residential clients. DDF funding will help PLTS execute on a recently secured, three-year contract from the City of Detroit to repair exterior building lights at several properties including recreation centers, police stations, fire departments, and city-owned office buildings.

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• Priceless Preservation’s Construction Co. (PPC) — $50,000 Contractor Line of Credit. Also located on the west side of Detroit, PPC provides high quality construction work across the Motor City and was recently awarded construction projects in partnership with the Rehabbed and Ready Program, a Detroit Land Bank, Quicken, and Home Depot initiative to help boost residential property values in Detroit. The EOC Fund line of credit will be used to fulfill contracts to renovate properties owned by the Detroit Land Bank.

• LoveLifeSwagger — $30,000 Line of Credit. Based in downtown Detroit, LoveLifeSwagger provides high quality, U.S.-made street wear products to the urban fashion market. Products are manufactured in several U.S.-based facilities including one on Detroit’s East side. Capital from the EOC Fund will be used to assist with business expansion and job creation.

• House of Pure Vin — $145,000 Loan. House of Pure Vin is seeking to become the wine retail
  store destination in downtown Detroit. Over half of House of Pure Vin’s inventory will come from locally sourced Michigan vineyards. The loan from the EOC Fund will be used to finance the start-up costs of the wine retail store.

“The success of minority-owned small businesses in neighborhoods across Detroit is critical to the city’s continued economic recovery,” noted Peter Scher, Head of Corporate Responsibility for JPMorgan Chase. “By providing them with greater access to credit, more entrepreneurs will have opportunities to thrive and grow for years to come.”

W.K. Kellogg Foundation President and CEO La June Montgomery Tabron also added, “This is a partnership that we’re certain will yield formidable results for entrepreneurs of color in Detroit,” said “We know intentional investment in these entrepreneurs is crucial in helping make these small businesses sustainable, in increasing jobs, and in supporting equitable urban development and Detroit’s recovery.”