New $11M Ebiara Fund Will Help Detroit’s Black and Brown Developers Scale
Kresge-backed fund designed to remove systemic barriers for Detroit’s minority real estate developers
Ebiara, a new fund to provide capital and start-up process assistance so minority-owned development companies can increase their impact on Detroit’s growing economy, was announced today by Economic Growth nonprofit Invest Detroit in partnership with consulting firm URGE Imprint and funding from The Kresge Foundation.
Detroit’s emerging developers, especially minorities, find it difficult to access capital to create scalable real estate development companies, resulting in developers only seeking project funding. A lending fund with global backing, Ebiara seeks to fill this gap by helping Black and Brown-owned development companies improve their operational capacity, build a deal pipeline and find the best talent available.
“Ebiara exists to help address the challenges minority developers face growing their businesses, from accessing capital to securing talent and resources,” said Roderick Hardamon, CEO and Chief Strategist of URGE Imprint. . “Ebiara wants to be a partner for real estate development companies that want to expand their impact in Detroit. As the ecosystem has evolved to lower the barrier of entry into real estate development, more work is needed to crack the code on the market. scalability.
Behind a $10 million investment linked to Kresge’s social investment practice program, the $11 million Ebiara fund relies on three main support tools: a low-cost alternative to equity to act as a as seed capital for the developer, coaching and technical assistance to help navigate city processes and ensure project completion and access to assets. During its first two-year pilot phase, Ebiara intends to work with approximately 10 developers and support $100-200 million in new development activity.
“Ebiara is an extension of Invest Detroit’s commitment to ensuring equitable opportunities in the growing Detroit economy,” said Keona Cowan, executive vice president of lending at Invest Detroit. “It helps leverage other existing Invest Detroit programs and neighborhood efforts while creating growth paths for committed and representative Detroit-based development companies.”
While similar programs exist in other markets, Ebiara is unique to Detroit, offers a lower cost of capital, and is more open to early-stage businesses.
“Minority-led Detroit developers need better access to capital on their balance sheets to compete and bid on public projects and community development work in the Detroit neighborhoods where they live and work,” Tosha said. Tabron, Head of Social Investments at the Kresge Foundation. “The status quo of limited access to capital is unacceptable. This greatly reduces the ability of these developers to accumulate wealth and hampers their efforts to move Detroit neighborhoods forward. This fund directly addresses both of these issues and is one of many municipal funds that Kresge is working with partners like Invest Detroit to build.
“This fund will go a long way to creating more opportunities for developers of color in our city,” said Donald Rencher, City of Detroit Group Director for Housing, Planning and Development. “I thank Invest Detroit, URGE Imprint and the Kresge Foundation for their commitment to improving equity and addressing underrepresentation in Detroit’s growth and revitalization efforts.”
For more informationvisit Ebiara.com.
About Invest Detroit
Invest Detroit is a nonprofit lender, investor, and partner that supports business and real estate projects that will drive economic growth in Detroit and the region. Their goal is to increase employment density and opportunities in a strategic and inclusive manner. Learn more at www.InvestDetroit.com.
About URGE Legal Notice
URGE Imprint is an integrated management consulting firm based in Detroit, MI. URGE is focused on helping clients move their ideas forward and into execution across three distinct practice areas: Public Sector, High Growth SMEs and Real Estate. URGE’s approach is based on an intellectual drive rooted in candid and thoughtful communication, meaningful change, and a commitment to partnership.