The Black Caucus Foundation of Michigan has formed a collaboration with DRI Fund, ProFinCo, and Crowdz
to launch the Capital and Cash Flow Program, a $40 million initiative targeted at strengthening Black
business with low-cost access to capital — $10 million of which is available immediately to City of Detroit
contractors.
Black businesses have historically been locked out of accessing low-cost capital, but this
partnership seeks to address what has traditionally been the biggest inhibitor to growing sustainable Black
businesses in public works and infrastructure projects.
“There have been hundreds of announcements regarding access to capital for Black businesses since the
murder of George Floyd,” says Michigan Legislative Black Caucus Chair and Black Caucus Foundation of
Michigan President, Senator Marshall Bullock, “yet the needle has not moved on the number of Black
contractors in infrastructure or capital availability to create their access. There is no better place to change
that than in Detroit, and there is no better opportunity for success than in Michigan.”
The Capital and Cash Flow Program is designed to strengthen the capacity of small, minority, and
disadvantaged businesses to compete for and successfully execute large public works projects for the State
of Michigan and beyond.
It is designed to eliminate cashflow disruption or mounting debt accumulated from loans acquired to offset receivables. Specifically, this program advances pay of up to 80% of all invoices associated with City of Detroit contracts—a huge help to businesses that are sometimes forced to wait up to 120 days or more for payment. It also targets additional technical support to prospective contractors that have skill sets that make them viable candidates for larger public works and infrastructure opportunities with the State of Michigan. The program will also move quickly to service vendors of the Detroit Community Schools District and other organizations that have the potential to spur an expanded infrastructure contractor base in Michigan.
With an estimated $2 billion in anticipated contracting from the City of Detroit and Detroit Community
School District about to commence, the collaboration also seeks to use the Capital and Cash Flow Program to
advance certified disadvantaged and minority businesses into larger contract opportunities with the
Michigan Department of Transportation.
“MDOT applauds the creators of this new Capital & Cash Flow Program, which we believe will enable more
minority owned businesses to enter the public sector infrastructure market and grow their businesses,” says
Tony Kratofil, chief operating officer for the Michigan Department of Transportation. “The Bipartisan
Infrastructure Law has created unprecedented levels of investment that represent opportunities for
minority-owned contractors to participate in building up our communities and the infrastructure they rely
on.”
Those leading this effort say the need for such an initiative is greater than ever before. They say that 93% of
all supply-chain participants are small and medium enterprises (SMEs), and half of those businesses suffer
cashflow shortages as they often wait extended periods to be paid. They view their collaboration as a
strength-based alternative to collateralized requirements of banks that reduce a business’s liquidity
operations capacity. They also point to the exploitive fees charged by hard money and merchant lenders that
destroy a company’s profits.
The Capital and Cash Flow Program is a component of the African American Commerce Initiatives’ Bridges
to Capital. Early enrollment to the program is underway and contractors may apply immediately for funding.
The Capital and Cash Flow Program can be accessed at www.capitalandcashflow.com or via the Black
Caucus Foundation of Michigan at (313) 285-9234
