The city of Detroit announced a new grant program dedicated to supporting local small businesses as they look to strengthen the city’s long-term economic growth.
Announced late last month, the program will support 140 Detroit-based startups with a $1,000 technology grant per business. The microgrant initiative will allocate funding to startups with fewer than 10 employees and an annual revenue of less than $500,000. Provided alongside the Rocket Community Fund, the grants can be used on a variety of day-to-day uses, including purchasing new hardware and software as well as upgrading tech tools.
To identify the startups to be awarded, city officials and the Detroit Economic Growth Corporation will work alongside nine business service and neighborhood organizations. These groups include the Michigan Black Business Alliance, the Arab American Chamber of Commerce, TechTown Detroit, Michigan Women Foward and Live6 Alliance. Each group will identify 10 to 20 startups for grant distribution.
“Small businesses are the heart of Detroit’s economy, and they deserve access to the tools that help them grow and succeed,” said Mayor Mary Sheffield, per the press release. “This funding will make it easier for neighborhood small businesses to modernize, reach more customers, and operate more efficiently.”
Across 11 counties, Detroit is home to over 530,000 businesses in total. Of these businesses, Black-owned businesses make up just under 10%, according to the Detroit Regional Chamber.
Organizations such as the Michigan Black Business Alliance have helped provide support for Black-owned businesses. Formerly known as the Metro Detroit Black Business Alliance, more than 1,500 members comprise the nonprofit.
Approximately 70% of these members are Black women. Through initiatives such as the Capital Connect program, the Michigan Black Business Alliance has provided nearly 78% of its budget to Black-owned businesses. Approximately 97% of the business owners awarded were part of the organization.
In addition to assistance from nonprofits, the city has provided financial support in the past. Last year, the city of Detroit announced a $3.4 million grant dedicated to creating 25 Small Business Support Hubs to assist entrepreneurs across the counties.
With the latest technology grant, the city is working to help startups modernize their businesses.
“Technology is no longer optional. It is foundational,” said Sean Gray, the Senior Vice President of Small Business Services for DEGC, per the press release. “By giving Detroit microbusinesses access to modern tools and connecting them with trusted support organizations, we are strengthening Detroit’s local economy from the ground up.”
