Michigan Business Beat | Elissa Sangalli, Northern Initiatives, Connecting Underserved Borrowers

Originally uploaded July 11th, re-edited April 22nd. Jeffrey Mosher welcomes Elissa Sangalli, President/CEO, Northern Initiatives, Marquette, MI. Questions 1. Can you explain the significance of Michigan having the largest state-supported CDFI program in the nation? 2. How will the $19 million awarded in this second round of MEDC funding specifically impact Michigan communities? 3. How has MEDC’s MI CDFI Fund impacted Northern Initiatives and other members of the coalition's ability to support underserved communities? 4. The FY2025 state of Michigan budget recently passed and the MI CDFI Fund was allotted $5M in funding. What specific initiatives or projects are expected to benefit most from this increased funding? 5. What role do you see CDFIs playing in the broader economic development of Michigan? $19 Million Awarded to 38 CDFIs to Support Underserved Borrowers Michigan Hosts the Nation’s Largest State CDFI Fund, Granting Support for Underserved Consumers, Small Businesses, Affordable Housing, and Neighborhood Revitalization LANSING, MI, June 24, 2024 – The Michigan Economic Development Corporation (MEDC) has awarded $19 million in grants to 38 Community Development Finance Institutions (CDFI) through the Michigan Community Development Financial Institution Fund Program (MI CDFI Fund Program). With this second round of funding, Michigan now has the largest state-supported CDFI program in the nation. In total, the MI CDFI Fund has awarded $84 million to 46 CDFIs. CDFIs are mission-based lenders that provide flexible and affordable financing to small and micro-businesses, first-time home buyers, affordable housing developments, and projects that revitalize neighborhoods, commercial corridors, and community spaces. CDFIs expand access to capital and the resources needed to grow communities by offering financial services, technical assistance, and more. The MI CDFI Fund is a grant program aimed at assisting CDFIs grow their lending capacity and meet the growing demands of underserved borrowers. To qualify for MI CDFI Fund grants, an organization must be a certified CDFI, in good standing with the US Department of Treasury, either be headquartered in Michigan or have a Michigan presence and commit to allocating no less than 80% of grant funds to support Michigan borrowers. “The MI CDFI Fund is critical to the loan programs our members provide throughout the state,” said Elissa Sangalli, Chair of the Michigan CDFI Coalition and President of Northern Initiatives. Michigan CDFIs have a big impact in communities throughout the state. According to MI CDFI Coalition research, Michigan’s CDFIs have deployed more than $4 billion in loans in addition to accomplishing the following: Created more than 30,000 permanent jobs; Deployed $1.53B PPP loans to Michigan businesses and nonprofits, preserving 165,000 jobs; Developed or preserved over 14,000 housing units (72% affordable); and Supported over 7,000 small or micro-businesses. First-round funds from the MI CDFI Program are already being deployed into Michigan Communities. Chi Ishobak, Inc. has issued a loan to a tribal-owned small business in Fraser, Michigan to purchase equipment, allowing the business to increase production and boost revenue. Cinnaire created the Community Development Organization (CDO) Loan Pilot Program Second round MI CDFI Fund Program grants were awarded to dozens including: Cinnaire Lending Corporation Northern Initiatives Learn more about the Michigan CDFI Coalition and its members at www.micdfi.org and more about the MI CDFI Fund Program at https://www.michiganbusiness.org/services/access-capital/cdfi-fund/