Small construction firms get shot at big projects, thanks to a finance program by DevCorp
It’s hard to find good news in the credit and finance world these days, especially if you’re a small construction company trying to get a piece of the hyper active Las Vegas construction market.
DevCorp, a boutique financial services company which provides construction financing for small to mid-sized commercial construction companies, has announced a new Contract Financing Program to help companies participate in large-scale construction projects, like CityCenter.
Through the Contract Financing Program with DevCorp, contractors get the working capital and financial tools they need for large-scale construction contracts. The program provides access to contract financing, providing local contractors cash flow for payroll, operating overhead, inventory, equipment and other business purposes.
The program is available to any contractor on any project and companies with large-scale construction projects such as Perini Building Company and MGM MIRAGE are referring contractors to the program.
Unlike traditional financial institutions, this program takes into account intangibles, such as the contractor’s technical, financial, and managerial capabilities. “DevCorp recognizes that a contractor's technical capability and track record are as important as the contractor's financial position when assessing the ability to complete a job successfully," said Carlton D. Lewis, Principal and founder of DevCorp. “Our new Contract Financing Program will provide qualified contractors with cash flow for construction opportunities, including MGM MIRAGE’s CityCenter project and others.”
This type of financial support is needed in the Southern Nevada business community according to Carl Rowe, executive director of the Housing Authority of the City of Las Vegas and a former management consultant. “DevCorp was able to help one of our smaller contractors stabilize both his financial and administrative circumstances and avoid the cancellation of a contract,” Rowe said.
Additionally, DevCorp has mobilized resources to provide technical assistance activities to meet the special needs of developing small construction businesses, and historically underserved contractor populations. Forging effective partnerships with the international financial community, including First Asian Bank, and establishing links to industry associations such as the National Association of Minority Contractors and the Nevada Minority Business Enterprise Center are vital to the success of this aspect of the CFP.
“I’m impressed with the services and skill mix that DevCorp brings to the table,” said Ernest M. Fountain, Project Director of the New Ventures Capital Development Company, which also operates the Nevada Minority Business Enterprise Center, funded from federal sources. “Not only does DevCorp provide contract financing, but high level technical support and assistance, especially in the construction arena.”
DevCorp Contract Financing Facility, LLC specializes in the design and implementation of financial tools that help small and middle market construction contractors build capacity through access to contract financing and bonding. For more information, please visit DevCorp online.
