An effort to boost Flint amid the city's crisis with lead-tainted water is getting a $25 million commitment that includes loans and specialized mortgage financing from Huntington Bank.
Detroit Pistons owner Tom Gores, a Flint native, and Huntington Bank CEO Steve Steinour announced the economic development program Wednesday.
Flint's water has been contaminated by lead leaching from old pipes, the result of a lack of corrosion control when the city was tapping the Flint River.
The initiative will provide $25 million for programs to support homeowners, businesses, entrepreneurs and residents of Flint and Genesee County. It's part of a unique partnership between FlintNOW and Huntington Bank.
“I am really proud of Huntington for stepping up in such a substantial way and joining us in this cause. This is exactly the kind of private sector partnership we envisioned when we launched FlintNOW,” Gores said in a statement. “The government is responsible for fixing the water supply in Flint, but we’re all responsible for fixing the community.This partnership signifies the momentum we need for the future of Flint."
Details of the FlintNOW and Huntington economic development program include the following:
- A $20 million commitment to make specialized Small Business Adminstration (SBA) working capital loans available to businesses in Flint. Qualifying small businesses in the community can access SBA loans from $5,000-$5 million, with priority processing and funding, no SBA fees for up to $150,000 in loans funded, and waived bank fees.
- A $2 million commitment to fund microlending to small businesses in Flint. Microlending targets small business owners in need of loan infusions ranging from as low as a few thousand dollars to $250,000, who could not otherwise obtain traditional bank financing. The $2 million commitment will mark an expansion of Huntington’s Pure Michigan Micro Lending Initiative collaboration with the Michigan Economic Development Corporation (MEDC). The program was first established in Michigan in 2013 and currently serves 17 Michigan counties. The expansion to Flint is expected to launch in the next 30-60 days and will be administered through community microlender Metro Community Development, with support from the Charles Stewart Mott Foundation.
- A $2 million commitment to make specialized mortgage financing available for home renovations associated with the water crisis, enabling borrowing for renovations and repairs of up to 50 percent of the as-completed value.
- A $1 million commitment to provide grants to small businesses in Flint that have been hurt by the water crisis. The funding will be made available through Moving Flint Forward, a program created by the Flint & Genesee Chamber of Commerce in partnership with FlintNOW and the Community Foundation of Greater Flint. The Genessee Chamber Foundation will oversee the program and is expected to start accepting grant applications in two weeks.
- Launch of a Flint Youth Financial Entrepreneurship Program that will include a comprehensive set of educational tools designed to teach children and young adults early on about business, entrepreneurship and money management.
“As one of the largest banks in Michigan, we are committed to helping Flint emerge from this crisis with a more vibrant and sustainable economy," Steinour said. "When we saw what Tom was doing with FlintNOW, it made sense for us to combine efforts on this important initiative. We are very pleased to be partnering with other committed organizations in Flint and Genessee County.”
Several additional partners will help facilitate and manage the program, including the Charles Stewart Mott Foundation, Community Foundation of Greater Flint, Flint & Genesee Chamber of Commerce, Metro Community Development and the Michigan Economic Development Corporation (MEDC).
Gores in January announced the launch of FlintNOW, a $10 million private sector campaign to provide short-term relief to victims of the Flint water crisis, and long-term revitalization of the region’s economy after decades of decline.
Huntington Bank has 393 branches in Michigan, including nine within Flint and Genesee County.