Creating Opportunities for MWBE ContractorsInnovative Loans and Technical Assistance

Nancy CarinExecutive Director, BOC Capital Corp.

BOC Capital Corp.’s MissionBOC 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 LoansProgram 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 ProcessPreliminary

Loan Application

Initial Intake &

Assessment

LoanApplication

Review & Pre-Approval

Final LoanApproval & Release of

Funds

• Financial and organizational capacity assessment

• Inform client of loan details

• Preliminary Application

• Document creation, collection and review: applications and supporting documents

• Refer completed packages to lender

• Decision may take 2 – 4 weeks

• $1K - $150K

• Client provides proof of contract award and work schedule

• 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

Borrower Initiates Work

on Project

Borrower Submits Payment Request

Institution or Prime

Contractor Approves Payment

Prime Issues Two-Party Check to

BCC and Borrower

BCC Issues Share of Payment to Borrower in

Accordance with Payment

Agreement

Institution ACHs payment to BCC

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Mobilization Loan PartnersNYCEDC 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 ProgramProvides 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 ProjectsProvides 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

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

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

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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 DirectorAnting 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

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BOC Capital Corp. | 12

Questions