The Michigan Economic Development Corporation (MEDC) announced that the Michigan Strategic Fund (MSF) Board has approved a loan of up to $10 million to the Michigan CDFI Coalition. The funding will increase lending capital for Michigan-based, non-depository Community Development Financial Institutions (CDFIs), supporting small businesses, affordable housing, and community development projects statewide.
The funding will support the establishment of the coalition’s first statewide pooled loan fund. Administered by the Michigan CDFI Coalition, the fund will provide participating community lenders with additional capital to finance entrepreneurs, homebuyers, housing developments, and neighborhood revitalization initiatives.
Founded in January 2023, the Michigan CDFI Coalition brings together community development lenders to collaborate on lending solutions, programming, and policy initiatives. Michigan has at least 45 operating CDFIs, including 27 loan funds and 18 credit unions. These mission-driven financial institutions provide flexible and affordable financing to businesses, individuals, and community projects that may face barriers to traditional financing.
The approved loan will expand resources for eligible non-depository CDFIs, allowing them to increase lending capacity and provide additional technical assistance to borrowers. The pooled funding model is designed to leverage public resources and strengthen the ability of participating lenders to support economic development across Michigan.
Organizations eligible for consideration include Chi Ishobak, Cinnaire Lending Corporation, CORE Community Partners, Detroit Development Fund, Grand Rapids Opportunities for Women, Great Lakes Women’s Business Council, Invest Detroit, Lake Superior Community Development Corporation, MCC/Magnet Lending, Metro Community Development, MI Assistive Technology Fund, Michigan Women’s Foundation, Northern Great Lakes Initiatives, Northern Shores Community Development, Opportunity Resource Fund, ProsperUS Detroit, Rende Progress Capital, and Venture North Funding and Development.
According to U.S. Treasury data cited by the coalition, Michigan CDFIs deployed $6.3 billion in loans between 2005 and 2023. This financing supported more than 26,000 microenterprises and small businesses, helped create or retain more than 82,000 jobs, and contributed to the development of 28.9 million square feet of real estate.
One example of the coalition’s impact is Little Liberia, a restaurant owned by Chef Ameneh Marhaba in Detroit’s East English Village neighborhood. Marhaba began participating in ProsperUS Detroit’s Entrepreneur Training Program in 2021 and subsequently received additional technical assistance and capital support to help develop her business.
Little Liberia opened in March 2026 inside The Ribbon, a mixed-use development supported in part by an MEDC investment. The restaurant demonstrates how community development financing, entrepreneurial education, and technical assistance can help small business owners bring their ideas to market.
Additional examples of CDFI-supported projects include the Cadillac Lofts redevelopment and Sawmill Lofts, a housing development in downtown Grayling. These developments illustrate the range of projects Michigan’s community lending organizations support, from commercial redevelopment and small business growth to housing construction and neighborhood revitalization.
The new pooled loan fund is expected to expand opportunities for participating CDFIs to finance similar initiatives throughout Michigan. By increasing access to flexible lending capital, the coalition aims to strengthen local economies, support entrepreneurs, encourage housing development, and facilitate long-term community investment.
KEY QUOTES:
“Today’s approval by the MSF Board invests in the mission of the Michigan CDFI Coalition and its network of Community Development Financial Institutions, providing tools and resources to aspiring small business owners, homebuyers, and communities across the state. From neighborhood revitalization projects to creating access to capital, the MEDC is grateful to the MSF for its ongoing support of our partners’ efforts in creating the conditions for enhanced economic opportunities for all Michiganders.”
Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair
“We are incredibly thankful for the support and partnership with MEDC and what this loan will help us accomplish. This loan will help us build and launch our first statewide pooled loan fund that will help our CDFI community provide flexible capital so residents can fulfil dreams of starting a small business and supporting housing and neighborhood projects in local communities.”
Elissa Sangalli, Chair of the Michigan CDFI Coalition and President and CEO of Northern Initiatives
“Michigan is home to the largest CDFI coalition in the country, and for the past four years, I have been proud to champion and defend the resources that allow these organizations to do their work. CDFIs are economic development in action, helping small businesses grow, supporting first-time homebuyers, and investing in revitalization projects that strengthen our neighborhoods and commercial corridors. When we invest in Michigan’s CDFIs, we are investing directly in the people, small businesses, and communities that are building a stronger economic future for our state.”
Mary Cavanagh, Michigan State Senator (D-Redford Township)
