The New Economy Initiative (NEI) awarded a $5 million grant to support Invest Detroit’s First Step Loan Fund.

As an arm of the Detroit Investment Fund (DIF), Invest Detroit’s First Step Loan Fund hopes to support 140-170 companies over the next three years in southeast Michigan.  Providing each company with initial financing ranging from $10,000-$50,000, the program will back promising start-up service, product, device and technology companies, giving preference to those that are women- or minority-owned businesses.

The fund will also support ventures led by management teams that have relevant experience and who have successfully completed a qualified training program such as the Fast Trac and Smart Start programs offered through TechTown and Ann Arbor Spark. In addition, the First Step Loan Fund will support start-up companies with the greatest potential for sustainability and to generate sales within two years.

This award supports NEI’s strategy around access to capital for the large number of entrepreneurs in the area and believes that Invest Detroit is the right entity to manage this fund – both in terms of expertise and their ability to coordinate with other institutions in the region such as TechTown and Ann Arbor SPARK. This grant assists in a greater purpose – endorsing and growing this institution at a time when outside investors are looking for sound entities to invest in throughout the region.

Applicants will require sponsorship by a qualified program and will be vetted through the First Step Loan Fund’s approval process.

For additional information on the First Step Loan Fund, visit http://www.detinvfund.com/first_step_fund.htm.