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FOR IMMEDIATE RELEASE
Thursday, October 4, 2012


NYC CONSTRUCTION LOAN PILOT PROGRAM EXPANDS TO INCLUDE MINORITY AND WOMEN OWNED BUSINESSES IN ALL INDUSTRIES

Pilot Program Awarded Nearly $1 Million in Capital to Certified Minority and Women Owned Construction Firms; Upfront Capital Will Expand Program to All Industries

The Department of Small Business Services (SBS) today announced the expansion of the NYC Construction Loan program to include Minority and Women-owned Business Enterprises (M/WBEs) and small businesses in all industries. Launched in December 2011, the NYC Construction Loan pilot program has helped connect businesses in the construction industry to nearly $1 million in capital and mobilized over $2 million in contracts. The new service is called the Upfront Capital Loan program.

“The NYC Construction Loan pilot initiative has helped construction firms access the capital they need to pay upfront costs and succeed on City projects,” said Rob Walsh, Commissioner of the NYC Department of Small Business Services. “Upfront Capital expands the program to all industries, as Compete to Win continues to grow and help strengthen minority and women-owned firms.”

“The upfront funding I received through the Upfront Capital program and BOC Capital has allowed me to grow my business and reach the next level,” said Donald Williams, owner of Only the Best for Less. “I was actively losing business because I could not afford the supplies I needed for larger projects, and I am now closing on new business with the City because of this loan. Upfront Capital is a game changer for small minority and women-owned businesses looking to grow.”

Upfront Capital provides short-term working capital loans from the New York Business Development Corporation and BOC Capital to M/WBE firms in all sectors. The loans are designed to help fund upfront expenses of labor and equipment for M/WBEs and other small businesses awarded contracts with City agencies. Eligible firms receive packaging assistance, pre-approval for a loan, and disbursement of funds once awarded a contract.

Upfront Capital is one of five Compete to Win capacity building programs, designed to help M/WBEs compete for and win City contracts. The free services help facilitate teaming opportunities, provide technical assistance, and also assist construction firms by helping business owners find mentors, secure loans, and surety bonds. Since passing Local Law 129 in 2005, the number of M/WBEs certified to do business with the City has grown from 700 to more than 3,500, with firms receiving more than 40,000 City contracts valued at $3 billion.

Firms in all industries can now apply for a loan. For more information or to apply, go to nyc.gov/CompeteToWin or call 311. An information session will also be held on Thursday, November 1, 2012..

About the Department of Small Business Services

The Department of Small Business Services (SBS) makes it easier for businesses in New York City to start, operate and expand by providing direct assistance to business owners, fostering neighborhood development in commercial districts, and linking employers to a skilled and qualified workforce. For more information on all of SBS’ services, go to www.nyc.gov/sbs.


  Contact: Merideth Weber (Small Business Services) 212-513-6318, mweber@sbs.nyc.gov

 

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