$19 Million Awarded to 38 CDFIs to Support Underserved Borrowers

Michigan Hosts the Nation's Largest State CDFI Fund, Granting Support for Underserved Consumers, Small Businesses, Affordable Housing, and Neighborhood Revitalization

LANSING, MI, June 24, 2024 – The Michigan Economic Development Corporation (MEDC) has awarded $19 million in grants to 38 Community Development Finance Institutions (CDFI) through the Michigan Community Development Financial Institution Fund Program (MI CDFI Fund Program). With this second round of funding, Michigan now has the largest state-supported CDFI program in the nation. In total, the MI CDFI Fund has awarded $84 million to 46 CDFIs. 

CDFIs are mission-based lenders that provide flexible and affordable financing to small and micro-businesses, first-time home buyers, affordable housing developments, and projects that revitalize neighborhoods, commercial corridors, and community spaces. CDFIs expand access to capital and the resources needed to grow communities by offering financial services, technical assistance, and more. The Michigan CDFI Coalition, founded in early 2023, brings together CDFIs across the state, working closely to forge inclusive policies, bolster community investment, all while providing flexible and affordable capital to uplift underserved communities and support nontraditional borrowers. The Coalition advocates for vital programs, such as the MI CDFI Fund Program, to support the work of CDFIs in Michigan.

The MI CDFI Fund is a grant program aimed at assisting CDFIs grow their lending capacity and meet the growing demands of underserved borrowers. To qualify for MI CDFI Fund grants, an organization must be a certified CDFI, in good standing with the US Department of Treasury, either be headquartered in Michigan or have a Michigan presence and commit to allocating no less than 80% of grant funds to support Michigan borrowers. CDFI award recipients may use up to 10% of the award for technical assistance programs to support borrowers and up to 10% may be used for administration and operational expenses. MI CDFI Fund program awards are formula driven, based on capacity and past deployment history.

“The MI CDFI Fund is critical to the loan programs our members provide throughout the state,” said Elissa Sangalli, Chair of the Michigan CDFI Coalition and President of Northern Initiatives. “The current high interest rate environment is making it more difficult for CDFIs to access low-cost capital for our programs, and programs like the MI CDFI Fund are more important than ever to support our growing demand.”

Michigan CDFIs have a big impact in communities throughout the state. According to MI CDFI Coalition research, Michigan’s CDFIs have deployed more than $4 billion in loans in addition to accomplishing the following:

Created more than 30,000 permanent jobs;

Deployed $1.53B PPP loans to Michigan businesses and nonprofits, preserving 165,000 jobs;

Developed or preserved over 14,000 housing units (72% affordable); and

Supported over 7,000 small or micro-businesses.


First-round funds from the MI CDFI Program are already being deployed into Michigan Communities. Chi Ishobak, Inc. has issued a loan to a tribal-owned small business in Fraser, Michigan to purchase equipment, allowing the business to increase production and boost revenue. Cinnaire created the Community Development Organization (CDO) Loan Pilot Program and with MI CDFI Program funds are providing individual and bi-weekly group technical assistance sessions focused on program development, grant/loan application preparation and compliance. ELGA Credit Union provided a construction loan to support the rehabilitation of Avon Apartments, a middle-income apartment complex in downtown Flint. 

“I’m thrilled to see the growing impact the MI CDFI Fund Program is having for our CDFIs and underserved communities across Michigan,” said Sen. Mary Cavanagh, Chair of the Senate Appropriations Subcommittee on Labor and Economic Opportunity and Michigan Economic Development Corporation. “The work the CDFI community does is critical in building capital for marginalized communities and growing Michigan’s economy in diverse and innovative ways. I’m excited to see their impact multiply throughout the state and I am proud Michigan is a trailblazer in providing CDFI funding.”

“Ensuring small businesses can thrive and create good-paying jobs in every region of Michigan is critical as we continue growing our economy, driving down unemployment, and uplifting working families and proving that everyone can Make it in Michigan,” said Amy Rencher, SVP Small Business Initiatives at the Michigan Economic Development Corporation. “Team Michigan will continue our efforts to ensure we are working alongside our partners to provide access to capital to underserved consumers, small businesses, provide affordable housing and support efforts to revitalize Michigan neighborhoods.”

Second round MI CDFI Fund Program grants were awarded to:

Allegan Credit Union 

Alpena Community Credit Union

Astera Credit Union

Awakon Federal Credit Union

Bloom Credit Union

Blue Ox Credit Union

Capital Impact Partners

CASE Credit Union

Chi Ishobak, Inc.

Cinnaire Lending Corporation

Community First Federal Credit Union

Community Promise Federal Credit Union

CORE Community Partners

Detroit Development Fund

ELGA Credit Union

Grow

Great Lakes Women's Business Council

IFF

Invest Detroit

Lake Huron Credit Union

Lake Trust Credit Union

Members First Credit Union

Michigan Community Capital

Michigan First Credit Union

Northern Initiatives

Northern Shores Community Development, INC.

OMNI Community Credit Union

One Detroit Credit Union

Opportunity Resource Fund

ProsperUS Detroit 

Public Service Credit Union

Rende Progress Capital

Route 31 Federal Credit Union

Straits Area Federal Credit Union

The Michigan Women's Foundation DBA Michigan Women Forward

United Bay Community Credit Union

Venture North Funding and Development

Zeal Credit Union

Learn more about the Michigan CDFI Coalition and its members at www.micdfi.org and more about the MI CDFI Fund Program at https://www.michiganbusiness.org/services/access-capital/cdfi-fund/

###

About Michigan CDFI Coalition
The Michigan CDFI Coalition was founded in 2023 with a mission of bringing Michigan CDFIs together to collaborate on the development of inclusive policies, deliver vital programs, and bolster their efforts in community investment across the state of Michigan. Prospective Michigan CDFI partners, communities, and individuals can learn more about the Michigan CDFI Coalition by visiting www.micdfi.org. 


About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook, Instagram, LinkedIn, and X(formerly, Twitter).