By Lettice Crawford, Director of Lending— Michigan

Detroit’s journey over the past decade has been one of resilience and renewal. Less than a year after the city’s historic bankruptcy filing in 2013, nonprofit organizations were at the forefront of rebuilding the social fabric, even as the city struggled with immense challenges such as high levels of disinvestment, redlining, and decay. In this context, the work of Community Development Financial Institutions like IFF became essential.

Although several CDFIs were already active in Detroit, there was still a critical need for lenders that could offer flexible, non-appraisal based real estate loans to mission-driven organizations. Unlike traditional lenders that rely on property values for underwriting, IFF provides capital primarily based on a nonprofit’s ability to repay the loan. This flexibility has allowed IFF to support organizations that are transforming Detroit’s neighborhoods. With funding and backing from The W.K. Kellogg, Kresge and Skillman Foundations, IFF expanded to Detroit in 2014, helping community changemakers build a more inclusive future.

Since 2014, IFF has provided nearly $100 million in financing through 104 loans to 57 local nonprofits. We also have provided $8 million in New Markets Tax Credits and supported 117 facilities projects for 78 organizations. This capital has helped nonprofits like the Detroit Achievement Academy, Wellspring and the Detroit Hispanic Development Corporation (DHDC) expand their facilities and services to create lasting, positive change.

Stories of Growth: The Impact of IFF Support
In 2014, Detroit Achievement Academy (DAA), a young charter school with just 44 students, received IFF’s first loan in Michigan – $17,250 to purchase furniture and technology for its classrooms. This small step was just the beginning. Today, DAA operates two high-performing K-8 schools with 500 students and has increased its budget from $500,000 to more than $10 million. With IFF’s support, the school has been able to expand its facilities and educational offerings and has even received national recognition for its innovative space design. Founder Kyle Smitley says, “Space communicates to the people who use the building what their value is, how loved they are, and what they’re worthy of,” says Smitley. “You know when you are in a well-designed place that is typically reserved for the affluent, and our kids deserved that.”

Wellspring, a youth development nonprofit in the Brightmoor neighborhood, has also experienced rapid growth since partnering with IFF. With the help of a $60,000 loan, Wellspring was able to expand its facility, tripling its space and eliminating its waiting list, allowing the organization to serve 300 youth per year. With continued growth, Wellspring plans to expand its services to serve up to 700 youth per year—many of whom are part of families that have benefited from Wellspring’s longstanding commitment to the neighborhood.

For the Detroit Hispanic Development Corporation (DHDC), IFF’s support came at just the right time. Following the Great Recession and a sharp decline in property values, DHDC was struggling to refinance its mortgage and nearly lost its community center. Thanks to an IFF loan of $574,226, the DHDC was able to restructure its debt and continue to provide critical services to the Latino community in Detroit. With IFF’s help, DHDC was able to expand its space, establish new programs like the Fantazma Market and Café, and continues to play an important role in the revitalization of the Southwest Detroit neighborhood.

What’s Next? A Look into the Future
As we celebrate our 10th anniversary in Michigan, IFF remains committed to supporting nonprofits that strengthen communities across the state. We look forward to helping even more nonprofits achieve their goals, whether through real estate financing or customized technical assistance. Let’s work together on initiatives that create lasting change.

Learn more about our work and get in touch to find out how we can support your organization’s growth.
Lettice Crawford, Director of Lending – Michigan
IFF.org | [email protected]