Predevelopment Loan Fund

Predevelopment Funds are intended to act as a catalyst for commercial, residential and mixed-use development projects in targeted areas in the City of Detroit.

Predevelopment financing assists both individual developers and community organizations by providing funding for costs incurred in the early stages of a project, such as environmental studies or appraisals that facilitate the project’s pursuit of traditional financing. To be considered for a loan under this program, applicants must be able to contribute meaningful owners’ equity in their projects, present a viable business or project plan, and demonstrate a successful track record.

Loan Size

$50,000–$200,000¹
1. Preferred range of $75,000–$150,000

Loan Terms

• Fixed amount term loans with flexible structure and repayment.
• Typical maturity will be up to three years.
• Fees and interest rates will be determined based on the project’s risk profile and capacity to repay.
• Reimbursement by borrower of reasonable closing costs.

Targeted Area

Predevelopment Fund targets Detroit's Downtown defined as I-94 / Mack Avenue East of I-75 to the North, I-75 North of Mack Avenue / St. Aubin Street South of Mack Avenue to the East, Rosa Parks Boulevard / 14th South of I-75 to the West, Train Tracks West of Rosa Parks Blvd. & Fort Street to the Southwest, and the Detroit River to the South. For nonprofit and community development projects, the entire City of Detroit is eligible. To view a larger map with additional details visit Google Maps.

Eligible Uses

Eligible uses include land acquisition, environmental studies, legal work, tax credit consultants and fees, site planning and design, appraisals, survey work and construction required to preserve the structural integrity of a building.

Eligible Projects

Housing development projects including single, multi-family and mixed-use developments. Commercial projects that have potential for significant positive impact on the community are targeted.

Collateral Requirements

Security interest in the real estate and guarantees of the key owners is required.

Application Process

Required application materials include but are not limited to project budget, project sources and uses, source and timing of repayment, biographies of the owners and key project members, and detailed project plans.

Contact Information

Interested applicants are encouraged to contact Mary Seaberg King to determine eligibility prior to submitting materials.

Mary Seaberg King
Invest Detroit
600 Renaissance Center, Suite 1710
Detroit, MI 48243-1802
mary.king@investdetroit.com
p: 313-259-6368
f: 313-259-6393