Motor City Contractor Fund connecting Detroit-based builders to capital for projects

(FOX 2) - Erecting buildings in Detroit - just like everywhere else - is expensive work and requires a lot of money up front.

And while there are billions of dollars in current building contracts around the Motor City, officials are working to ensure more of that money goes to contractors based in Detroit.

Big picture view:

There is currently $5 billion in commercial building contracts in Detroit, but not enough contractors based in the city to fill them, leading to outside companies earning bids.

The Motor City Contractor Fund was created to help local firms get access to money that can help front the cost typically seen when on a construction site.

According to Kinnus Paul with the Gilbert Family Foundation's economic mobility team, not enough capital is one of the biggest barriers to getting started.

"Buy more equipment, whether it's to bring on more staff, whether it's to upscale your current staff to get prepared for new projects - all these things take money," said Paul.

Local perspective:

The Farrow Group has benefited from the resources made available through the fund.

According to Marja Farrow, payment for a job may not come for a month and a half, even as costs up front continue to pile high. 

"Programs like this help," she said. "The motor city contractor fund in addition to being a financial resource they adds technical assistance."

The fund also meets with recipients once a month in-person and once a month virtually as part of 10-month program that helps educate those getting money.

"We are going to cover a variety of different things from bookkeeping to you HR practices to conflict resolution on the job. Things like that that really needs to hit home with a contractor who is looking to grow," said Paul.

What you can do:

The fund is looking for 60 new applicants for its third round of loans. 

Find more information here.