Minority-owned subcontractors starting to take advantage of ECDI’s innovative “Capital For Construction” program
Economic & Community Development Institute, in partnership with JPMorgan Chase & Co., recently launched a new program titled “Capital For Construction” that addresses financing gaps minority-owned construction subcontractors face when submitting bids for large-scale construction contracts.
ECDI’s Jesse Mark, who has worked within the business-financing sector for 17 years and was recently hired by ECDI to oversee the program, sat down to give us an update on the first six weeks since the program’s official launch.
How is the “Capital For Construction” program going so far? What sort of progress have you made since it launched?
To date, $363,000 has been accessed by minority-owned subcontracting companies through this program. Funding has gone on to support a number of services including final clean, electric, painting, metal framing, landscaping & lawn care, and carpentry. These funds have helped our clients pay for labor and material costs; but we can also provide funding for working capital, equipment financing, and extend clients a line of credit.
Who is the ideal candidate that could take advantage of the financial products offered through the program?
Any MBE certified contractor who is looking to hedge against their receivables for outstanding projects. Those with a proven track record of successfully completed projects are more likely to get funded. But primarily, I am looking for clients with excellent character that operate a company that is looking to grow and create jobs in our community.
Aside from the lending products, what else can this program offer to subcontractors?
We have developed a training curriculum in conjunction with the MBE program; classes will commence in early 2018. Classes will cover items such as estimating, bidding process, payroll & cash flow management.
What are some of the initial challenges you’ve faced getting the program off the ground?
Just making sure that potential clients that need capital quickly have all the required documents filled out within the loan application. Going back and forth asking for certain forms can delay payment. I want to get you your cash quick.
How has the program’s Advisory Board (comprised of Lonnie Miles of Miles-McClellan Construction, Dan Moncrief III of McDaniel’s Construction, and Nancy Tidwell of NRT & Associates) helped during its infancy stage?
The Advisory Board, well…I can’t say enough about the impact they have had on the program launch. The knowledge & experience they share are paramount to the success of my program.
What opportunities are you excited about regarding the MBE program moving forward?
The opportunity to help Central Ohio grow, while teaching others to become better at managing the “business-side” of owning a company and creating jobs. I appreciate having the opportunity to learn about our client’s passion and talent for doing what they love to do everyday.
— To enroll in ECDI’s “Capital For Construction” or have your questions answered regarding the program, Contact Jesse Mark by email at jmark@ecdi.org, or by phone at (614) 206-0667.
Published in OhioMBE – Jan. 1, 2018
