Motor City Match launches applications for 18th round of small business grants
Chanel Stitt
With several previous winners looking on, Motor City Match announced Thursday that applications for its 18th round of small business grants are now being accepted.
The announcement was made on Livernois Avenue in Detroit in the same space that the program was announced in 2015. Today, that spot is between what are now two businesses supported by the program.
"It gave us the ability to thrive," Charles Micheaux, co-owner of men's clothing boutique Krispy Addicts, said of the program that has distributed $9.5 million in grants since its start.
Entrepreneurs can submit an application until the end of October for this round, and the winners will be announced by the end of the year.
Motor City Match looks for business owners who have talent and drive and who can make a difference in their communities. Winners receive assistance from the idea stage all the way to opening, which can include developing a business plan, picking a site, helping with interior design or getting the cash grant.
"One of the things we consider when we evaluate applications is community impact," said Drew Lucco, Motor City Match program manager. "So applications get scored on that. The density of the business, the way they contribute to the neighborhood they're going into is factored in.
"Sometimes, that might mean there's no businesses around, so we really want to fund a business because they're providing a service that isn't there. Others that we know, maybe there is a vacant building along a string of businesses, and filling that vacant building would create a larger overall effect."
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The city of Detroit, the Detroit Economic Growth Corporation, the Economic Development Corporation and the U.S. Department of Housing and Urban Development are in partnership to support Motor City Match.
Business owners will receive grants from a $500,000 pool, which is expected to increase to $1 million a quarter next year with support from Council member Roy McCalister Jr. and the Biden administration using American Rescue Plan funding, said Detroit Mayor Mike Duggan. This will expand the opportunity to assist more businesses.
"What you're going to see (is) a lot more support for winning business plans in the first place, and helping site selection, as well as increasing the cash grants," said Detroit Mayor Mike Duggan. "We think the average $50,000 grant is the right amount, but given the way commercial corridors are coming back in the city, we want to open these storefronts that much faster, so that's the plan."
This is following a one and a half year suspension of the program while the program focused on moving 130 businesses, all previous winners, into the Community Services Block Grant Program, which wasn't the easiest, said Duggan.
"We want to be the place that entrepreneurs want to come, and if you look at the 130 that are already open, they're employing 1,000 people," Duggan said. "That's 1,000 who would not have had jobs were if not for Motor City Match."
Past business winners are over 80% minority-owned, 71% are female-owned and 64% of the businesses are owned by residents of Detroit. About 100 people apply for the grants and an average of 10 win each quarter. Motor City Match has assisted over 1,400 entrepreneurs through the course of its program.
Seven of the previous winners on hand Thursday are located on Livernois. The entrepreneurs stood behind the podium as the announcement about new applications was made. In addition to the owners of Krispy Addicts, Motor City Match winners present included the owners of Skin Bar VII, Good Times on the Ave, Narrow Way Café and Fahrenheit 313. There are nine businesses on Livernois that are supported by Motor City Match.
Krispy Addicts is a men's clothing store at 19434 Livernois that received a grant in 2019. The store was in the process of opening, but needed the extra funding that it received from Motor City Match.
"When we opened up first, we had to open up when it wasn't even a street," said Micheaux of Krispy Addicts. "We didn't have sidewalks with this whole streetscape thing on Livernois. After the dust settled, two months later, we came into the pandemic. Through these bumps in the road, we had enough funding. ... Even though we had our own money, (Motor City Match money) ... gave us a cushion."
The dust Micheaux referred to was from a nine-month project that launched in 2019, which had a goal to make Livernois Avenue more walkable and add left turn lanes and other upgrades.
The business was able to open a second location at 1425 Woodward downtown in partnership with Bedrock Detroit. The owners, from Detroit, felt the need to set up their store in the city because they wanted to provide an extra amenity to the space and to help the community.
His advice to business owners who are thinking about applying for Motor City Match funds: "They're matching funds, so make sure you have some funding for them to match per your business plan.."
Contact staff writer Chanel Stitt on Twitter: @ByChanelStitt. Become a subscriber or gift a subscription.