September 22, 2026
Today, the Michigan Strategic Fund (MSF) board approved a $10-million low-cost loan to help the Michigan CDFI Coalition launch the state’s first statewide pooled loan fund. The Coalition plans to launch a $50M pooled fund in 2027 and grow it in future years.
MEDC, who provides administrative services to the MSF, has been a strong partner to the CDFI community, supporting programs like SSBCI 2.0 and the MI CDFI Fund. We are thrilled to continue to build on that partnership as we launch a statewide pooled loan fund that supports our members.
The MSF loan is critical to building and launching the fund. It will serve as the fund’s first-loss loan enhancement, with terms designed to help the Coalition attract additional capital:
- Interest Rate: 0.5%
- Term: Up to 15 years
- Companion loan: 1:3 requirement
- Loss position: 80%
With funding approved, Coalition leadership will be working diligently to build and launch the fund. Next steps include:
- Raising an additional $40M in capital from other public, philanthropic, and private-sector partners
- Confirming our fund manager, oversight, and compliance
- Determining our fund legal structure and governance
- Developing our fund guidelines, underwriting standards, and qualifications
We’ll need feedback and guidance from members along the way, so be ready to join us on this journey! Our goal is to launch the fund in early 2027. If you or your organization have any questions, please reach out to an Executive Committee
member.