New Economy Initiative fund to offer $2M in grants to support entrepreneurs

The New Economy Initiative has announced a new round of funding for small and minority-owned businesses, including four grants for groups that can reach more underserved populations.

The $2 million in grants comes from the philanthropic organization's Inclusive Small Business Support Network Fund that assists entrepreneurs in Wayne County. NEI is part of the Community Foundation for Southeast Michigan.

“The small business community is constantly changing, and we're always looking to — how do we best support entrepreneurs and where are they not getting support?” said Wafa Dinaro, executive director of the New Economy Initiative.

Grants will go to 18 organizations and range in size from $72,400 to $180,000 each.

Adelante Michigan — Lincoln Park

One of the groups serving underserved populations to receive a grant is the Michigan Hispanic Fund, which is a part of the Michigan Hispanic Chamber of Commerce, a statewide nonprofit business association that supports Hispanic entrepreneurs and other communities in its membership. 

Mark Moreno, executive director of the Michigan Hispanic Chamber of Commerce, said the organization plans to use the money to start a program called Adelante Michigan, which translates to “moving forward.” The program will assist small businesses in Lincoln Park, which is 21% Hispanic, according to Data USA. Moreno said businesses in this area need help networking with business and community leaders, along with digital marketing and accounting assistance. 

“Adelante Michigan is geared to focus on equipping underserved Hispanic-owned micro businesses in Lincoln Park with relevant essential resources, technical resources, leadership training, entrepreneurial skill set training, startup training, strengthen new businesses,” Moreno said. “Really supporting those early-stage or existing businesses — providing them those essential resources to adapt, profitably grow and become more sustainable.”

There are plans for this program to assist 50 Hispanic-owned businesses with a $100,000 grant it received from NEI. And the technical assistance can be provided to business owners in Spanish. Business owners can find out more at www.mhcc.org.

Industrial Sewing and Innovation Center — Wayne County

Another group serving underserved people that got funding is the Industrial Sewing and Innovation Center. It’s a nonprofit focused on standardized training and innovation in the fashion industry. It teaches ethical, profitable and sustainable domestic manufacturing, said Chandler Vaughan, program manager. No experience is required for training. The organization aims to teach people in underserved communities so that they can gain better skills, which can lead to higher wages. 

Funding from NEI will support a pilot program called the Manufacturing Business Unit, which features a Business Leadership Training Program. The training program will allow people to learn about the business itself, understand how to have a voice in the industry and how to make their own profits. 

“It’s a yearlong training where operators get to learn the financial management techniques like understanding profit and loss statements, understanding balance sheets and then also getting participatory management techniques to understand how to deliver feedback and work within a team to come to decisions,” Vaughan said.

Vaughan added: “There's a huge disconnect between someone who's envisioning themselves as a brand owner or a designer, and actually executing and manufacturing in a way that they can be profitable. So there's really this disconnect between the academic institute, and we're bridging the creative side with the real business aspect that is often left out.”

The organization received a $150,000 grant from NEI. More information about this programming is available at isaic.org.

The other two grantees in this category are the Detroit Regional LGBT Chamber Fund, and Grace in Action Collectives, a southwest Detroit-based network of collectives and worker-owned cooperatives, Grace's website says.

Two NEI programs received funding: The Right to Start program and the Capital On Ramp Program, a microloan pilot program. 

Capital On Ramp Program

Dinaro said she is continuously hearing that a lack of access to capital is the biggest gap for entrepreneurs, so the Capital On Ramp Program will be a part of the solution by providing entrepreneurs with a simple loan application process and technical assistance along the way. 

“We really looked at all of the documents that traditional lenders asked for, and were like, ‘What is absolutely necessary, what can we get rid of and how can we streamline the process?’ and have this one place where small business visitors can go apply, and then get approved and then go through technical assistance to support them and make sure that they pay back the loans.”

Over 50 business owners will be able to get access to microloans from $5,000 to $50,000. If the business owner starts struggling after taking out the loan, they can get a six-month pause on payments, Dinaro said. If all of their payments are made, they can receive six months of forgiveness or six months of technical assistance covered. 

Applications will open in July at neweconomyinitiative.org.

Business owners can get funding through the CORP program through these nonprofit organizations:

• Black Leaders Detroit
• Detroit Economic Growth Corporation and the BuyDetroit Program
• Metro-Detroit Black Business Alliance
• Michigan Women Forward
• Detroit Development Fund
• ProsperUS Detroit
• Eastside Community Network
• E. Warren Development Corporation
• Endeavor Detroit
• Fair Food Network
• Great Lakes Women’s Business Council
• Michigan Small Business Development Corporation

Right to Start program

As part of NEI's effort to turn its focus to policy over the next few years, it is working with Right to Start, a national organization that works on grassroots solutions for entrepreneurs. The goal is to help entrepreneurs talk about some of the issues that they face, and learn how to present that story to legislators. 

“We have the (Michigan Microbusiness Coalition), a statewide coalition, and as we talk to legislators, the thing we keep hearing is, they never hear from small businesses, they don't hear from the entrepreneurs,” Dinaro said. “So we really want to make sure that those voices are heard and that they're understanding the issues, the concerns.”

This program was part of the New Economy Initiative’s spring grant cycle, but it will officially launch in July at neweconomyinitiative.org.

To view the official source, visit: https://www.freep.com/story/money/business/michigan/2023/06/22/new-economy-initiative-giving-2m-in-grants-to-support-entrepreneurs/70340410007/