Access to capital is a major impediment for businesses within the construction industry and beyond. NHCA is set to launch collaborative financial programs focused on streamlining access to lending institutions, grants, and financial literacy programs, empowering our members to surmount financial hurdles and realize both growth and success.
SBA Microloan Program, a collaborative effort between NHCA and the U.S. Small Business Administration (SBA). This program will be crafted to address the unique financial needs of aspiring entrepreneurs and small business owners by providing accessible microloans of up to $50,000. What sets our program apart is its commitment to sustainability and support. A portion of the fees generated from these microloans will be reinvested into the loan pilot program, ensuring a sustainable source of funding for future entrepreneurs.
Additionally, we understand that financial education is paramount to business success. Thus, in conjunction with offering microloans, our program includes the invaluable provision of technical assistance and financial education. Borrowers can benefit from guidance on budgeting, financial planning, and best practices for managing business finances effectively.
NHCA believes in empowering small businesses to thrive, and well-informed entrepreneurs are better positioned for success. We are also dedicated to promoting diversity and inclusion, welcoming applicants from all backgrounds.
The application process is designed to be streamlined and accessible, making it easier for entrepreneurs to access the capital and resources they need.
Loan Pilot Program is a visionary initiative that envisions an interconnected ecosystem where all stakeholders come together to share both the risks and rewards of supporting small businesses. In recognition of the pivotal roles played by various industry stakeholders, including developers, general contractors, subcontractors, the Small Business Administration (SBA), lending institutions, and insurance companies, we are committed to fostering collaboration and creating a sustainable lending framework. This collaboration entails recognizing NHCA certifications, enhancing the credibility of our certified businesses, and mitigating risks through the allocation of a portion of microloan fees for additional insurance coverage. Moreover, our partnership with general contractors will provide training to subcontractors, streamlining reporting and change order processes to expedite payment disbursement and facilitate business growth. NHCA will also work closely with the SBA to explore opportunities for fee waivers or interest payment assistance, further alleviating the financial burden on our borrowers and enhancing accessibility to our lending programs.
The Loan Pilot Program is not just a short-term solution; it represents a continuum of financial security that extends beyond the microloan program. Eligible borrowers have the opportunity to graduate from the program after successfully repaying three short-term loans for a maximum of under $500,000 per loan. This graduation signifies not only financial growth but also a significant milestone in the business's journey towards sustainability and success. Importantly, this program is tailored for businesses in their early stages, with registered businesses ranging from 0 to 5 years.
Bonding Capacity Program aimed at empowering construction businesses to secure larger contracts by increasing their bonding limits. The program will feature educational workshops, financial counseling, and partnerships with surety companies to improve creditworthiness. In collaboration with the Small Business Administration (SBA), we will advocate for increased dollar amounts on bonding guarantees. Additionally, we will work with developers and government agencies to provide a higher multiplier on SBA funds, thereby amplifying the program's impact.