The Local Initiatives Support Corporation (LISC), a long-time investor in Flint-area communities, is expanding its commitment to economic opportunity in the region with small business financing that is specifically designed to advance racial equity, support good jobs and expand the local economy.
At an event on May 8th, LISC Flint—the local program office of the national nonprofit—is announcing its first “Project 10X” loan to Vehicle City Onsite Fleet Services (VCOFS), a truck maintenance and repair operation in Burton, Mich. Project 10X is a $1 billion national LISC program to addresses systemic barriers to health, wealth and opportunity for people of color.
VCOFS is owned by Joseph and Kimberley Shelby, a husband-and-wife team that left successful corporate careers to pursue a long-time goal of business ownership. They launched the company in 2019, moved into a larger space in 2020 and began looking for opportunities to buy their space and grow their core business operations in 2022.
What they found, though, was that conventional financing was difficult to access, in part because VCOFS was too new to be able to borrow at reasonable terms. Their experience also reflects the national gap in access to capital for Black businessowners, which has long impacted growth and wealth-building. The Federal Reserve Bank’s Small Business Credit Survey reports that loan applicant firms owned by people of color are half as likely as white-owned applicant firms to report that they received all the traditional financing they sought.
In the case of VCOFS, LISC was able to step in and provide a loan to finance the property purchase. With access to affordable financing, VCOFS was also able to pay off an existing, more expensive SBA loan and earmark the cost savings for reinvestment in the business.
“For LISC, there was so much about this investment that was appealing,” noted Juan Zuniga, executive director at LISC Flint. “Not only is VCOFS a successful Black-owned, woman-owned, veteran-owned business, but in purchasing this property, the Shelby’s are anchoring the firm’s business activity along an important commercial corridor, offering good jobs and operating a training program for workers new to diesel mechanics—helping expand employment skills more broadly in the area.”
“The Local Initiatives Support Corporation (LISC), has been a God Send. Through the tremendous support of Juan Zuniga and Shaina, we have gone from doors being shut by traditional banking institutions in the area, to doors being open through LISC. Truly we are thankful! As a small Veteran owned/Woman owned business, it’s remarkable that there are programs like this, that LISC has to offer. Now that they have done their part, we have to continue to do ours. Our mission is, ‘We Serve As We Service.’ We serve the Lord our God as we service the community. With LISC help, we can continue to drive loyalty through exceptional guest service, hire and train Certified Technicians and staff that reflect our community. With the partnership of LISC, we are even more equipped to be present and active in our community.” -Joseph Shelby
Zuniga said the VCOFS loan reflects the kind of small business support LISC will be providing in the future as well. “This isn’t philanthropy; these are business investments in the long-term health of our workforce, our local economy and our communities” he said. “People like the Shelbys, who are active in our community as individuals volunteering their time and as business owners creating an economic impact, are willing to connect their ambitions and their experience to larger goals for our region. When they can access the capital they need, they can be a powerful counterweight to years of disinvestment.”
To date, LISC has invested more than $407 million in the state of Michigan—including $35 million in Flint—to support affordable housing, economic development, health, education, safety and jobs. In 2023, LISC Flint expects to increase economic development impact in greater Flint.
About LISC
LISC is one of the country’s largest community development organizations, helping forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so that people and places can thrive. Since our founding in 1979, LISC has invested $29.7 billion to create more than 489,000 affordable homes and apartments, develop 81.4 million square feet of retail, community and educational space and help tens of thousands of people find employment and improve their finances. For more, visit www.lisc.org.