Detroit's construction market is booming, with billions invested in public and private projects. However, many local contractors, particularly those from minority communities, face barriers that limit their ability to compete for contracts. – Detroit’s construction market is booming, with billions invested in public and private projects. However, many local contractors, particularly those from minority communities, face barriers that limit their ability to compete for contracts.
To address this, the Gilbert Family Foundation launched the Motor City Contractor Fund (MCCF). It provides resources for Detroit-based contractors, especially minority-owned firms, to strengthen their businesses in the competitive construction industry.
Launched in partnership with Invest Detroit and the Detroit Development Fund, MCCF aims to level the playing field by offering financing, technical support and business advisory services.
“By bridging gaps in capital, knowledge and connections, MCCF is cultivating a new generation of successful general contractors, driving economic growth and fostering a more resilient local industry,” said Linda Nosegbe, director of Economic Mobility at Gilbert Family Foundation.
Addressing barriers for minority contractors
Minority-owned businesses in Detroit, especially in construction, have faced exclusion from traditional lending and higher interest rates, hindering their growth. Many struggle with limited credit histories and strict lending requirements. To address this, the MCCF partners with Community Development Financial Institutions (CDFIs) to offer tailored loans for equipment, staffing and project execution, helping businesses overcome these barriers.
Contractors also face limited access to decision-makers and contract opportunities. MCCF addresses this by hosting events like “Show Me the Money,” which allows participating contractors to connect directly with lenders to learn more about how to access capital to help their businesses grow.
“This networking builds relationships essential for growth in the competitive construction industry,” said Kinnus Paul, senior program manager of Economic Mobility at Gilbert Family Foundation.
Additionally, the program provides grants and technical support to improve areas like marketing, bookkeeping and digital presence, ensuring contractors can scale effectively.
To help contractors handle larger projects, MCCF offers guidance to meet industry standards, gain certifications and grow sustainably.
“More than $5 billion in annual commercial construction in Detroit is done by contractors from outside the city,” said Laura Grannemann, executive director of the Gilbert Family Foundation. “MCCF is one way we’re working to keep that wealth in Detroit, serving Detroiters.”
This initiative empowers local contractors and keeps more of Detroit’s construction wealth within the city, benefiting its residents and communities.
MCCF’s pilot program
The Motor City Contractor Fund first launched its pilot program in April 2022, when it enrolled 25 Detroit-based contractors. The program quickly demonstrated its potential to drive positive change.
Over the course of the pilot, MCCF disbursed $3.5 million in financial support. Nine contractors successfully secured a total of $1.9 million in loans, which enabled them to grow their businesses and participate in larger-scale projects.
Blue Horizon, one of the contractors that participated in the pilot program, nearly doubled its revenue with the help of the technical assistance and loan received through the program.
“Through MCCF, they were able to connect with the Detroit Water Sewerage Department’s lead service line replacement program, which was created to remove lead service lines in Detroit homes and replace them with copper lines,” explained Paul. “That connection nearly doubled their revenue in two years and allowed them to expand their crew by eight people.”
Paul noted that the new employees were paid between $26-$42 per hour.
Participants in the pilot also benefited from valuable networking and learning opportunities. They attended 16 industry-led workshops covering topics like digital marketing, financing, business planning and labor management. Furthermore, they engaged with more than 20 job providers which allowed them to gain insights into a wide range of development projects in Detroit. These interactions provided contractors with the tools and connections needed to expand their market reach and build stronger, more sustainable businesses.
Expanding opportunities for contractors in Detroit
Building on the success of the pilot program, the MCCF has announced that it is expanding to include 50 additional contractors. The new cohort will receive targeted support to increase their competitiveness in Detroit’s growing construction market.
Participants will receive $5,000 grants to address specific business needs, which will help them strengthen operations and improve their ability to secure contracts.
“Contractors have used the grant for a range of essential business needs, with a significant focus on tax support and bookkeeping,” Nosegbe said. “Many sought help with filing taxes and advice on structuring their businesses effectively. Others invested in tools and services to improve their operations and business uniforms to enhance professionalism and branding. These resources helped contractors streamline their operations and position their businesses for growth.”
The program offers more than just financial support; it also provides:
- Personalized coaching: Contractors receive three one-on-one sessions with MCCF’s technical assistance operator, Life Line Global, where they will cover growth planning, financial projections, marketing strategies and credit profile development.
- Curated networking opportunities: MCCF hosts events like the Network Connection Event, where contractors can meet industry experts and discuss job availability, the construction ecosystem and potential partnerships.
- Mentorship program: Each contractor is paired with a mentor who provides guidance and helps expand their professional network.
- Tailored business services: MCCF provides resources such as grants for marketing, bookkeeping and website development.
Additionally, Metro Detroit-based Barton Malow, along with Detroit Development Fund, provide mentorship, training and access to major development project bidding opportunities.
Fostering inclusivity and economic growth
The Motor City Contractor Fund is more than just a program to help contractors grow; it is a key driver of economic development and inclusivity in Detroit. By supporting local businesses, the program contributes to the creation of jobs, strengthens neighborhoods and promotes economic growth throughout the city.
The program fosters partnerships that will help contractors become more competitive in the larger construction industry, which allows them to secure a greater share of Detroit’s lucrative development projects.
Through its collaborative partnerships with organizations like Invest Detroit, the program ensures contractors have the financial and technical support they need to succeed. Invest Detroit, a mission-driven lender, serves as the lead arranger and loan originator for MCCF, managing the program’s financial products, loan agreements and connections to job providers.
The Ownership Initiative, a Black-owned impact advisory firm, also played a role in redesigning the program to improve its operational efficiency and impact.
Looking ahead: Expanding opportunities for Detroit contractors
As demand for construction and home repair projects rises in Detroit, the Motor City Contractor Fund is committed to ensuring Detroit-based contractors -- particularly from minority communities -- are positioned to succeed.
Expanding to 50 contractors will further empower local businesses and help them thrive in an increasingly competitive market.
To qualify for future cohorts, contractors must be based in Detroit, employ Detroit residents and have experience in residential or commercial contracting.
Interested contractors can apply through the Motor City Contractor Fund website for more information on resources and opportunities.