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Creating Opportunities for MWBE Contractors. Innovative Loans and Technical Assistance. Nancy Carin Executive Director, BOC Capital Corp. BOC Capital Corp.’s Mission.

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creating opportunities for mwbe contractors

Creating Opportunities for MWBE Contractors

Innovative Loans and Technical Assistance

Nancy Carin

Executive Director, BOC Capital Corp.

slide2

BOC Capital Corp.’s Mission

BOC Capital Corp. (BCC) is a not-for-profit Community Development Financial Institution (CDFI) dedicated to providing financing to community businesses.

BCC has a special focus on lending to minority, women, immigrant and low-income entrepreneurs as well as businesses located in low-income neighborhoods.

At FYE 2013, BCC has disbursed over $7.8 million in 573 loans!

BOC Capital Corp. | 2

slide3

Mobilization Loans

Program Overview

  • Mobilization loans up to $150,000
  • Offered to MWBE primes and subcontractors
  • Used to meet long lead equipment, material and/or labor costs pertaining to New York City, Institutional, and Private Sector projects
  • GOAL: To increase MWBE ability to mobilize and perform on larger-size contracts
slide4

BOC Capital’s Role

  • Provide affordable and user-friendly capital needed by MWBEs to perform on government, institution, and private-sector contracts
  • 3 to 9-month payment schedule with payback while the contractor is completing the contract
  • 7.8 to12% interest rates
  • Pre- and Post-Loan Technical Assistance
slide5

The Loan Process

Final Loan

Approval & Release of Funds

Initial Intake

&

Assessment

Preliminary Loan Application

Loan

Application Review & Pre-Approval

  • Preliminary Application
  • Document creation, collection and review: applications and supporting documents
  • Refer completed packages to lender
  • Client provides proof of contract award and work schedule
  • Disbursements & repayments based on contract
  • Contract payment assignment required
  • Financial and organizational capacity assessment
  • Inform client of loan details
  • Decision may take 2 – 4 weeks
  • $1K - $150K

BOC Capital Corp. | 5

slide6

Unique to the Mobilization Loan Process

  • Full Application Package Includes
    • Contract Information
      • Copy of Contract
      • Copy of necessary insurance / licenses to perform on contract
      • Work Schedule
      • Proposed Loan Payment Schedule

(based on cash flow for the job)

slide7

The Loan Repayment Process

Borrower Submits Payment Request

Borrower Receives Loan from BCC

Borrower Initiates Work on Project

Institution ACHs payment to BCC

Institution or Prime Contractor Approves Payment

BCC Issues Share of Payment to Borrower in Accordance with Payment Agreement

Prime Issues Two-Party Check to BCC and Borrower

BOC Capital Corp. | 7

slide8

Mobilization Loan Partners

NYCEDC Kick-Start Loans

Provides MWBEs participating on NYCEDC construction projects with the ability to finance their mobilization efforts. These loans are to be utilized to meet long lead equipment, material and/or labor costs related to NYCEDC construction projects. BOC Capital is the lending partner.

NYC Upfront Capital Loan Program

Provides MWBEs participating on NYC-owned contracts from a number of city agencies with the ability to finance their mobilization efforts. BOC Capital and NYBDC are the lending partners.

BOC Capital Mobilization Loans for Institutional and Private Sector Projects

Provides small businesses with contracts with the ability to finance their mobilization efforts, e.g., design manufacturers, engineers, architects, etc.

slide9

NYC SBS Upfront Capital Loan Program

Program Benefits:

  • Provides a competitive interest rate and funds for up to 30% of the contract’s value, up to $150,000
  • Allows the loan to be repaid directly by the agency or prime contractor
  • Disbursement and repayment terms customized to each contract
  • Support services and other help to become loan-ready
  • Clients include the following industries:
    • Framing and Drywall
    • Wholesale Technology and Equipment Sales
    • Steel and Metal Fencing
    • Painting
    • Information Technology Services
  • NYC Agencies worked with:
    • Department of Information Technology
    • Department of Design and Construction
    • Department of Environmental Protection
    • Department of Cultural Affairs
    • New York Police Department
    • Department of Citywide Administrative Services
    • Department of Sanitation

BOC Capital Corp. | 9

BOC Capital Corp. | 9

slide10

Mobilization Impacts - Examples

3 Construction loans for $208,800 to leverage $1,372,982 in contracts

6 Service based loans for $178,505 to leverage $252,638 in contracts

Over 400% leverage!

BOC Capital Corp. | 10

slide11

BOC Capital Corp.

Nancy Carin – Executive Director

Anting Wang – Business Specialist

For more information please e-mail BCC at awang@bocnet.org

Brooklyn

85 South Oxford St, 2nd FloorBrooklyn, NY 11217tel: 718.624.9115fax: 718.246.1881

Queens

96-11 40th Road Ground FloorCorona, NY 11368 tel.: 718-205-3773 fax: 718-205-3774

BOC Capital Corp. | 11

slide12

Questions

BOC Capital Corp. | 12