Minority entrepreneurs are much less likely to apply for a loan, and these fears are justified by evidence showing that they are far less likely to have their loan applications approved compared with their non-minority counterparts. While funding is open to all businesses, the focus of this fund is MBEs, and especially those doing work on major civic and infrastructure projects in Detroit such as the M1-Rail and the Red Wings Hockey Arena and Entertainment District.
The MBAF was created by a coalition of people dedicated to providing access to capital for minority and women business enterprises (MWBEs). The fund is the brainchild of Louis Green, outgoing President/CEO of the Michigan Minority Supplier Development Council (MMSDC) and incoming CEO of a new venture called Supplier Success. Supplier Success is a supply chain finance solution that improves working capital and unlocks cash flow for both buyers and suppliers.
Rafael Martinez, an expert in receivables financing, was also instrumental in securing funding for this project, and is a Principal at MBE Capital Partners, LLC, a subsidiary of Supplier Success.
The Michigan Minority Supplier Development Council will employ a full-time local loan officer to help MBEs gain access to capital from this fund as well as other financing sources.
Several private equity and investment firms are contributing to this fund. And, while the focus of the MBAF is specifically on Southeast Michigan, plans are underway to replicate this fund in other regions across the United States.
For more information, please visit www.minoritysupplier.org/mbafund/
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