A program of Southwest Economic Solutions A Place-Based, Economic Development Strategy Training| Technical Assistance | Micro- lending |Capacity Building

What is ProsperUS Detroit? ProsperUS Detroit is a place-based economic development strategy designed to empower low-income, immigrant and minority individuals and communities through entrepreneurship training, micro-lending, technical assistance & capacity building.

CORE PRINCIPLES  Finding the Untapped, Hidden Talent  Eliminating Barriers  Taking a Comprehensive, Long-Term Approach  Working at Scale  Linking Energy to Place  Building Local and Regional Capacity  Fostering Accountable Community Leaders

OUR NEIGHBORHOODS

ProsperUS Detroit What makes ProsperUS different?  ProsperUS Detroit’s Lending Officer works closely with applicants to prepare and present loan packages to the ProsperUS Detroit Lending Committee.  The loan officer may work with a borrower for an extended period help them to better understand the lending process, reduce risk, and help to make the lending process a positive one.  When a loan is approved, the lending officer works very closely with the borrower throughout the life of the loan. If the borrower is in trouble, the lending officer is the first to catch it and to work with the entrepreneur to prevent default and/or identify other needs for the business.

ProsperUS Detroit What makes ProsperUS different?  ProsperUS Detroit provides loans on terms that traditional nonprofit financing sources often cannot serve.  Moreover, the up front investment through the training program and intensive one-on-one coaching, enables the program to make loans based on character, rather than impersonal traditional data

Lending Impact  Almost $300,000 in loans closed since April 2014  559 Avg. Score  Avg. loan amount $18900  Avg. borrower net worth -$31,500  Over 50 jobs created in target neighborhoods since April 2014

QUALIFICATIONS  If the business must be located within one of our FIVE TARGET NEIGHBORHOODS.  Existing businesses are eligible so long as they are located within one of our FIVE TARGET NEIGHBORHOODS.  The business must be a for-profit  Applicant must have a COMPLETE application package.

A COMPLETE APPLICATION PACKAGE: WHAT DOES IT CONSIST OF? 1.ProsperUS Detroit Loan Application + PFS (Borrower) 2. Completed Business Plan (Borrower)  Financial Historicals/Projections (Borrower) 3. Trainer Reference (US) 4. Previous 3 Years of Tax Returns  Personal & Business, if existing (Borrower) 5. Credit Report (US with YOUR permission)

Eligible Borrowers Graduate of ProsperUS Detroit’s entrepreneur training curriculum.  a. Graduates may be either just starting a business or operating an existing business  b. Non-graduates must be operating an existing business  c. Business located or operating within a ProsperUS Detroit target neighborhood

THE 7 “C’s” OF LENDING  CAPITAL  COLLATERAL  CREDIT  CASH-FLOW  CAPACITY  CHARACTER  COMMUNITY

CHARACTER  The LENDER will try to learn about who YOU are.  Do you take OBLIGATIONS and COMMITMENTS seriously?  Do you WORK HARD?  Do you follow up in a timely manner when asked to do something for the LENDER?

COMMUNITY  We are interested in the VALUE your business brings to the community.  Are you…  creating jobs?  providing needed PRODUCTS and SERVICES?  creating a COMMUNITY GATHERING PLACE?  bringing LIFE to a vacant storefront?

Growing Detroit From Within…

Questions – Contact Info Hector Hernandez Executive Director, Southwest Economic Solutions Pierre Batton ProsperUS Detroit, Micro-lending Administrator