This month, Greater Ohio Policy Center recognizes the Economic and Community Development Institute’s (ECDI) Capital for Construction program as a good idea. GOPC’s Good Ideas webpage lists exemplary initiatives and programs happening around the State of Ohio.

Historically, there has been a lack of equitable participation of Minority Business Enterprises (MBEs) in the construction industry and associated fields. ECDI, a community development financial institution, is helping to address this imbalance by providing bridge funding to MBEs through their Minority Business Enterprise Capital for Construction (CfC) program, which started in 2017. “CfC provides high caliber, industry focused training, and access to flexible and affordable short-term capital—services and products not readily available to minority contractors.” (ECDI, 2019).

CfC provides short-term, low-interest loans—ranging from $5,000 to $150,000—that can be used for payroll, insurance costs, vendors, subcontractors, materials, suppliers, and equipment costs. CfC participants “receive one-on-one technical assistance, including loan packaging, mentorship, and loan management (site visits, review of financials, e.g.), as well as access to industry-specific group training.” When finished, they then have the opportunity to expand their businesses through additional long-term capitalization loans through ECDI (ECDI, 2019).

To learn more about Minority Business Enterprise Capital for Construction and other good ideas, visit: https://www.greaterohio.org/good-ideas-initiative

Image Source: ECDI, 2019