Minority and women-owned sub-contractors can now access capital to help them build capacity and obtain work at MassHousing-financed construction jobs.
Companies that successfully apply for funds from MassHousing's new Construction Contract Financing Program (CCFP) can borrow from $25,000 to $200,000. Funds can be used to advance material and labor costs that will help them obtain work on housing construction projects that are financed by MassHousing.
"This new loan program offers a terrific opportunity for minority and women-owned sub-contractors to purchase materials, hire employees or meet payroll costs up front and to get contracts that before might have been out of reach," said MassHousing's Tim Sullivan. "Many times, these firms have to wait up to 60 days on the job site before they receive their first payment from the general contractor, but these loans will help them meet their operating costs until then."
MassHousing has provided $1 million for the pilot program and has partnered with the Massachusetts Growth Capital Corporation (MGCC), which will process applications and administer the program.
"MassHousing continues to be a model of inclusion and diversity in their business practices. Our partnership will help their minority vendors and contractors build capacity of their individual businesses," said MGCC President and CEO Lawrence D. Andrews. "MGCC's role will be to assess the company's financial ability to repay debts, often providing technical assistance to the company, thereby providing access to MassHousing financing. These funds are much needed in the community and the partnership of MassHousing and MGCC helps to further the goals of equal access to opportunity and capital access."
One subcontractor is already benefitting from the program. Design Construction and Consulting Services, Inc. (DCCS) of Dorchester has accessed $200,000 which helped them to get work as a sub-contractor on the renovation of Madison Park Village III, a 120-unit affordable housing community in Roxbury owned by the Madison Park Development Corporation.
"I'm very happy to be here and things are going nice and smooth," said DCCS President and CEO Cesar DaSilva, whose company is doing siding, window replacement and other work. "I'm glad [MassHousing and MGCC] made this money available and I hope it helps many more people like me. The money I received was used mostly for cash flow and to make sure payroll is taken care of. Right now in the field we have 10 workers, sometimes 12 depending on what we need, and three people working in our office."
MassHousing is providing $35 million in financing for the renovations at Madison Park. The general contractor, LD Russo, Inc., has subcontracted 42% of the construction work to minority and women-owned firms, including much of the carpentry, roofing, masonry, plumbing, painting, sprinkler and metal work.
DaSilva founded DCCS, Inc. in 1990. The company provides a range of construction services and employs more than a dozen people.
For more information about the requirements and application process for the CCFP program please contact Jose Luis Rojas Villarreal, Community Group Manager, at 617-337-2815 or email@example.com or Robert Clark Williams, Loan Officer, at 617-337-2823 or firstname.lastname@example.org.