Longtime Detroit businesses could receive grants from new $500,000 fund

Malachi Barrett
| BridgeDetroit

Long-standing businesses that have weathered Detroit’s economic woes and paved the way for its ongoing revitalization are important cultural institutions deserving of help.

City officials gathered Thursday inside the iconic building. Bertha Marketsaid that’s why it’s new grant program and this week the Legacy Business Register was launched. Businesses that have been in business for at least 30 years and have made significant contributions to the city’s history and culture can apply for a grant of $15,000 or $50,000 to cover a wide range of expenses.

Council President Mary Sheffield competed for the $500,000 award. allocation to run the program during budget negotiations last spring. That’s only enough for an initial round of grants for 16 businesses, but Sheffield said the council is working with Mayor Mike Duggan’s administration and the Detroit Economic Growth Corporation to find long-term funds.

Right now, the program will provide $15,000 grants to two businesses from each of the seven Detroit City Council districts, as well as two citywide $50,000 grants.

“For generations, small businesses and legacy businesses have been the backbone of our economy, weathering the toughest storms, never leaving our city, investing in our neighborhoods and continuing to provide jobs, services and character to our city,” Sheffield said Thursday. “These businesses are woven into the fabric of Detroit. As we build our great city and attract business and investment to Detroit, we must never forget those who were here.”

Sheffield said the program grew out of conversations with Lauren Stovall, founder Institute for Heritage Conservation and daughter of Hot Sam founder Tony Stovall. Hot Sam’s is the oldest men’s clothing store in Detroit, at 103 years old.

Stovall said the legacy businesses are remnants of authentic and “native Detroit.” Longtime businesses need to be preserved as the city changes, she said.

“They still remain from the pandemic, from the recession, from the Great Depression, from the economic turmoil,” Stovall said. “We must make it our mission to see them correctly. They have preserved the integrity and dignity of this city. When we think about the revitalization and revitalization of Detroit, we think of these legacy businesses as remnants that have survived for such a time.

“We have a duty and obligation to preserve what they have already started so they can continue to be here and we can continue to build with them in mind,” Stovall said.

Grant funds can be used for a variety of purposes, including product inventory, equipment and technology, furniture and interior design, building renovation and renovation, design work, marketing, legal fees and consulting.

City funding cannot be used for employee pay, taxes, rent, mortgages, debt payments, stock investments or real estate purchases.

Businesses can register for a district level grant of $15,000 Here or register for a citywide grant of $50,000 Here.

There is a short time to try to get the money – the application period ends at 8 a.m. on December 23rd.

DEGC offers assistance in completing applications. Send questions and comments by email [email protected].

Grant recipients will be announced on February 21, 2025.

Sean Gray, vice president of small business services at DEGC, said a general meeting was held in October to hear what businesses needed. About 71 people connected. Some expressed frustration with navigating bureaucratic hurdles such as obtaining permits and monitoring blight, while others asked for financial support, help creating succession plans and participation in major city events.

Saul Green, owner of the Michigan Barber School, found the city’s inspection process “exhausting” and called for city employees to receive better training on how to interact with business owners. Green said he spent more than half a million dollars on improvements to his building but struggled to understand what inspectors wanted.

“It’s a sneaky process, y’all,” Green said.

The city also launched a database of long-established businesses to increase awareness and connect them with future opportunities. Legacy business I can register for inclusion in the city register and interactive map.

This is Detroit’s first attempt to catalog its oldest establishments. As of Thursday, there were seven businesses on the list:

Stovall said there are hundreds, maybe even thousands, of outdated businesses in Detroit. The need for the registry came as DEGC worked to provide opportunities for city businesses during last summer’s NFL Draft.

“When the Super Bowl comes to Detroit, we’ll be able to say, ‘Here’s a list of business owners with history, so if you want a taste of Detroit, if you want a show that reflects who we are, here’s where to start.’ – Gray said.

Detroit distracted more $19 million to growing businesses, which sometimes leaves established legacy businesses feeling left behind.

“We’ve been in many of the corridors around town where Motor City Match has opened new businesses, and we make sure to look out from those ribbon cuttings and see you,” Gray said. “We want to be there to support you, and we know your needs are different. It’s important to acknowledge the people who kept this corridor relevant, who kept it thriving, or even held it back when it wasn’t.”

Bert Dearing Jr., who founded the eponymous Eastern Market music salon and restaurant in 1987, said the grants are just a fraction of the help the city could offer the longtime business.

He said the city’s drainage fees, which are based on the amount of concrete surfaces on your property that send precipitation and melting snow into the sewer system, are killing a lot of small businesses. Dearing said the city should consider cutting property taxes or redirecting federal money for pandemic relief.

Dearing said he probably wouldn’t seek the grant anyway.

“This is a start,” Dearing said. “I never received anything from the city. I was independent and I was lucky because I’m a hustler.”

Darlene Hereford, owner of Doll’s Go-Kart, said she is opening to secure funding through the program. But an even bigger setback for her family business is construction along the Joe Louis Greenway.

She said that construction equipment was installed on her territory and access was blocked. She was set to open this year after the death of her husband, who started the business with her in 1982 with the goal of creating a drug-free environment for children.

“I just want people to know I’m out there again,” Hereford said.

Malachi Barrett is a reporter for BridgeDetroit. Contact him at [email protected].

Kaylee Lickliter contributed to this report.