BOC Capital Corp.

Report
Creating Opportunities for
MWBE Contractors
Innovative Loans and Technical Assistance
Nancy Carin
Executive Director, BOC Capital Corp.
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!
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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
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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
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The Loan Process
Initial Intake
&
Assessment
• Financial and
organizational
capacity
assessment
• Inform client of
loan details
Preliminary
Loan
Application
• Preliminary
Application
• Document
creation, collection
and review:
applications and
supporting
documents
• Refer completed
packages to lender
Loan
Application
Review & PreApproval
Final Loan
Approval &
Release of
Funds
• Decision may
take 2 – 4
weeks
• Client provides
proof of contract
award and work
schedule
• $1K - $150K
• Disbursements &
repayments based
on contract
• Contract payment
assignment
required
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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)
The Loan Repayment Process
Borrower
Receives Loan
from BCC
Institution or
Prime
Contractor
Approves
Payment
Borrower
Initiates Work
on Project
Institution ACHs
payment to BCC
Prime Issues TwoParty Check to
BCC and
Borrower
Borrower
Submits
Payment
Request
BCC Issues Share of
Payment to
Borrower in
Accordance with
Payment
Agreement
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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.
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NYC SBS Upfront Capital Loan Program
Program Benefits:
 Framing and Drywall
 Provides a competitive interest
 Wholesale Technology and Equipment Sales
rate and funds for up to 30% of
 Steel and Metal Fencing
 Painting
the contract’s value, up to
 Information Technology Services
$150,000
 Allows
NYC Agencies worked with: BOC Capital Corp.
| 9the loan to be repaid
 Department of Information Technology
directly by the agency or prime
 Department of Design and Construction
contractor
 Department of Environmental Protection
 Disbursement and repayment
 Department of Cultural Affairs
 New York Police Department
terms customized to each
 Department of Citywide Administrative
contract
Services
 Department of Sanitation
 Support services and other help
to become loan-ready
 Clients include the following industries:

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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!
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BOC Capital Corp.
Nancy Carin – Executive Director
Anting Wang – Business Specialist
Brooklyn
Queens
85 South Oxford St, 2nd Floor
Brooklyn, NY 11217
tel: 718.624.9115
fax: 718.246.1881
96-11 40th Road Ground Floor
Corona, NY 11368
tel.: 718-205-3773
fax: 718-205-3774
For more information please e-mail BCC at
[email protected]
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Questions
BOC Capital Corp. | 12

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