for motor city contractors
Investing in Detroit
The Motor City Contractor Fund is a business growth initiative that provides technical assistance along with flexible and affordable lending to Detroit-based contractors. Participants receive 3-6 months of technical assistance, coaching, and supportive resources.
About motor city contractor fund
The challenge
Detroit contractors face a variety of business and financial challenges that prevent them from qualifying or competing for public, private, residential, and/or commercial projects. These challenges cause contractors to focus on a few projects at a time, rather than growing and scaling their business. When contractors can’t grow their businesses, it creates a shortage of resources to remove blight, rehabilitate homes, and bring Detroit’s neighborhoods back to thriving, well-maintained places.
The Solution


The Details
MCCF will begin with a twelve-month pilot phase that combines lending, business advisory services, community-based partnerships, and technology guidance to successfully meet the needs of a number of referred local emerging Detroit contractors while supporting their business growth opportunities. The pilot phase consists of two major components:
1. An Innovative Financial Product:
2. Industry-Specific Technical Assistance:
- A growth curriculum and navigation services for contractors
- Flexible, on-demand learning with pre-recorded modules
- One-on-one coaching from professionals with expertise related to the curriculum
ELIGIBILITY
- Residential or commercial contractors with proven experience operating and headquartered in Detroit, and/or with multiple active or future projects in Detroit and employing Detroit residents
- Participant contractors must have at least two years in business or have considerable personal experience, at discretion of program
- Participant must be able to prove related experience and at least one year in business unless a successor of an existing business
- If a successor of an existing business, participant must prove experience of managing the prior business or directly related business
- For LISC home repair, participant must have completed 3-5 projects and provide references or a sponsor in the form of a larger contractor or institutional organization to provide letters of support
Referred and qualified contractors will have an opportunity to discuss short-term capital needs with select community-based lenders. As capital need discussions advance, community lenders will collect business and owner documentation from each participant to underwrite loans based upon their criteria, which varies based on the lender.
Participating Lenders




partners and supporters




With additional Support From:





FAQs
What is the MCCF?
The Motor City Contractor Fund (MCCF) is a collaborative effort between CDFIs, banks, foundations, and the public and private sectors to bring flexible and affordable lending to Detroit-based contractors.
When is this pilot program available?
The pilot period runs from April 2022 through March 2023.
How can I join the pilot?
The pilot program is only accepting applications on a referral basis. The program will be open to all Detroit-based contractors sometime in Spring 2023. If you are an interested contractor, please fill out the contact form to receive future updates.
Is this program local to Detroit?
Yes. The pilot program will be for Detroit-based contractors only.
WHAT BUSINESS EXPENSES COULD THE LOAN COVER?
The loan covers certain working capital including but not limited to upfront payroll expenses, inventory, rent or mortgage payments, utilities, materials or equipment rental, and accounts payable.
HOW IS TECHNICAL ASSISTANCE PROVIDED?
The Technical Assistance program will be designed and operated by Lifeline Global Consulting in collaboration with key stakeholders. Contractors referred to the pilot will be screened with an intake assessment to determine their eligibility and to begin identifying opportunities for intervention, support, and business growth planning. The program will also launch a virtual technical assistance “hub,” which will enable on-demand learning and facilitate opportunities for in-person coaching with industry experts. Participating contractors will receive a $5,000 grant to apply their learnings and address immediate needs aligned with their customized business growth strategy. Lifeline Global Consulting will monitor contractors’ progress throughout the program and maintain relationships with community lenders to increase opportunities to receive a fixed loan with multiple disbursements.
How do I join the MCCF as an funder or sponsor?
If you are interested in funding or sponsoring the MCCF program, please fill out the contact form and someone will reach out.
Do I need a license?
Yes. Contractor participants must be licensed through the State of Michigan.
Is an MCCF loan forgivable?
No. This is not a forgivable loan.
How much funding is available?
$4,500,000 in total will be available for the pilot.
How much money can I borrow?
Loans for contractors will be made in amounts varying between $25,000 and $300,000. Loans are subject to credit approval and meeting eligibility criteria.
What is the interest rate?
7% fixed rate on funds disbursed.
Who determines if I am eligible for an MCCF loan?
Contractors will work closely with one of the participating Community Development Financial Institutions (CDFIs) to review program eligibility, gather required documentation for underwriting, and provide other information required to originate a loan.
Do I need collateral?
No. However, at the originator’s discretion, a UCC lien filing may be done for a borrower. Personal guarantees may also be required for individuals that own 20% or more of applying businesses and those that have controlling interest in the business (per organizational documents).