On July 2, John Schoeniger began work as Loan Fund Manager at ShoreBank Enterprise Detroit (SED), a nonprofit affiliate of
ShoreBank Corporation. Most recently, Schoeniger was Vice President of Residential Real Estate Lending for ShoreBank in Cleveland.
Schoeniger will work primarily with small- and mid-sized developers and minority- and female-owned small businesses. Money from the fund can be used for predevelopment and preconstruction financing as well as predevelopment work such as appraisals, environmental assessments and architecture and engineering. "We want to fill gaps if there are any," he says. "We are willing to be creative and flexible, up to and including equity or equity-like deals."
The new position became necessary when SED received nearly $12 million in investments and loans from the Ford and Knight foundations in January. The fund's goal is specific: build and renovate commercial and residential properties in Detroit, particularly in Next Detroit neighborhoods. Schoeniger's goal is to have $2 million "out the door" in the twelve months.
He points out that funds from SED can be used to leverage conventional financing and/or to fill in any gaps that remain in a development portfolio. A developer, he says, "might have some of the money, but not all. We will try to figure out what they need and how to get it to them."
Schoeniger came to banking from a background in construction and real estate which, he says, helps him "communicate to all kinds of small- to mid-sized contractors and developers." He sees "rust belt" parallels between his experiences in Cleveland and the initiative he has undertaken in Detroit.
Source: John Schoeniger, SED
Writer: Kelli B. Kavanaugh
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