$2M pledged to 6 Detroit nonprofits supporting underserved small businesses

What’s happening: JPMorgan Chase announced on Monday a new $2 million commitment of philanthropic capital for nonprofit organizations dedicated to advancing support for underserved small businesses in Detroit.

Who is involved: The commitment extends to six nonprofit organizations serving underserved small businesses in the city:

• $750,000 commitment to Detroit Development Fund (DDF). This grant continues the firm’s support of DDF’s Entrepreneurs of Color Fund, a program launched seven years ago to support the growth and development of Detroit-based businesses owned and operated by underserved entrepreneurs.
• $400,000 commitment to TechTown Detroit. This commitment will support and help expand TechTown Detroit’s four small business technical assistance programs. Such assistance will include one-on-one business coaching, Business Boot Camps, strategy sessions, and alumni engagement.
• $400,000 commitment to Accounting Aid Society (AAS). This grant provides support to AAS’s program that assists underserved entrepreneurs across Detroit, Wayne County, and Oakland County in developing stronger financial acumen through tax services and small business technical assistance.
• $400,000 commitment to The Working World. This commitment will support education and training for Detroit-based business support organizations, succession planning assistance for retiring or exiting business owners, and will facilitate financing for ownership conversions in industries such as child care.
• $300,000 commitment to Black Leaders Detroit (BLD). This grant provides capacity support to BLD to help scale its program that provides no-interest and recovery-focused loans for diverse social and community driven projects that are owned and led by minority entrepreneurs. The loans may be used for funding working capital, equipment purchases or rentals and to support a growth or expansion plan.
• $200,000 commitment to Metro Detroit Black Business Alliance (MDBBA). The commitment will support MDBBA’s program that provides resources and technical assistance to small minority-owned businesses in Detroit to grow and scale their enterprises. Through a culturally relevant framework, MDBBA will offer financial technical assistance, back-office support, and coaching on building and navigating relationships with lenders and funders.

What they’re saying: “We are very thankful for the funding and partnership provided by JPMorgan Chase,” said Deborah L Jones, Chief Operating Officer of the Detroit Development Fund. “Together we are committed to making a tremendous impact in underserved communities and in the lives of families throughout the city of Detroit.”   
 
What’s next: JPMorgan Chase also plans to hire more than 500 small business bankers over the next two years to provide more support to small business owners across the country, including in Detroit, where Chase expects to increase its business banking team by more than 20%. 

Why it matters: “New business formation in Detroit is up more than 60% from pre-pandemic levels,” said Jason Tinsley, Vice Chair for J.P. Morgan’s Michigan Private Bank. “As small businesses continue to start, scale, and grow, we’re committed to expanding access to financial capital, customer sourcing, and a reliable network of support for small business owners regardless of background or zip code.”