Detroit Pistons Owner, Huntington Bank Pledge $25M to Flint

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FLINT, MI – Detroit Pistons owner Tom Gores, who previously pledged $10 million in economic assistance to beleaguered Flint, said Wednesday that his FlintNOW foundation has teamed with Huntington Bank to provide $25 million in assistance to homeowners, businesses and entrepreneurs in Flint and Genesee County.

"I am really proud of Huntington for stepping up in such a substantial way and joining us in this cause,” Gores, a Flint native, said in a statement on the FlintNOW website. “The government is responsible for fixing the water supply in Flint, but we’re all responsible for fixing the community.”

“As one of the largest banks in Michigan, we are committed to helping Flint emerge from this crisis with a more vibrant and sustainable economy,” Steinour said in the statement. “When we saw what Tom was doing with FlintNOW, it made sense for us to combine efforts on this important initiative.”

The financially struggling city turned off the taps to water from Detroit, which gets its supply from Lake Huron, and switched to water from the Flint River in a money-saving move while under the control of an emergency manager in 2014. The corrosive water caused lead in aging pipes to leach.

The city switched back to water from Lake Huron in October, a month after a blistering report showed the proportion of Flint children with above-average levels of lead in their blood had nearly doubled since switch.

Fixing the problem could cost more than $1.5 billion, according to some reports.

The program announced by Gores and Steinour Wednesday includes:

• $20 million to waive bank fees, expedite processing and make specialized Small Business Administration loans from $5,000 to $5 million available to Flint businesses.
• $2 million for a microlending fund for small business owners in need of loan infusions ranging from as low as a few thousand dollars to $250,000, but who cannot otherwise obtain traditional bank financing. The fund expands Huntington’s Pure Michigan Micro Lending Initiative collaboration with the Michigan Economic Development Corp. established in Michigan in 2013 and in place in 17 Michigan counties. The fund, which will be launched within the next two months, will be administered by Metro Community Development, with support from the Charles Stewart Mott Foundation.
• $2 million for specialized mortgage financing available for home renovations associated with the water crisis, enabling borrowing for renovations and repairs of up to 50 percent of the as-completed value.
• $1 million for grants to small businesses in Flint that have been hurt by the water crisis. Funding will be made available through Moving Flint Forward, a program created by the Flint & Genesee Chamber of Commerce in partnership with FlintNOW and the Community Foundation of Greater Flint. The Genesee Chamber Foundation will oversee the program, which is expected to begin accepting grant applications in two weeks.
• A Flint Youth Financial Entrepreneurship Program to teach children and young adults early on about business, entrepreneurship and money management.

In January, Gores, who is also CEO of Platinum Equity, appointed his business partner Mark Barnhill and Pistons vice chairman Arn Tellem to tap other private sector businesses and organizations to assist in Flint’s recovery.

The city had been in economic decline for years before the current water crisis.

See Also

• Pistons Owner Pledges $10M to Flint, Says Private Sector Must Help

“Families and children who live in Flint are suffering, but this is a national issue,” Gores said in a statement at the time. “Flint was once a cornerstone of American industry that gave a lot to this country. We need help now more than ever and ask that people from coast to coast continue stepping up.”

Among the first businesses to come forward was Huntington Bank, which has 393 branches in Michigan, including nine within Flint and Genesee County, and is the largest SBA lender in Michigan and the second-largest in the United States.

"They’re bringing $25 million to the table, which is an important and meaningful financial commitment," Barnhill said in the statement. "They’re also providing experience and structure that will help our efforts to ensure that the capital gets to the people who need it most, and that the programs have long-term staying power."

Read more about FlintNOW here.

(Photo of Tom Gores via Detroit Pistons media guide)

See Also

• Flint Water Whistleblower is ‘TIME 100’ Nominee