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Access to Capital and Bonding

Updated Jan 5, 2023

Access to Capital

The MTA Small Business Development Program (SBDP) matches small businesses with a larger firm as a means to foster on-site training and the transfer of knowledge that helps small firms grow as primes and larger subcontractors. To overcome the challenges that most emerging firms experience, the SBDP facilitates opportunities for Small Businesses including Minority, Women and Disadvantaged Business Enterprises. The program includes several elements focused on facilitating business success. Every stop leads to new contracts.

To support the ability of small businesses to access capital, the MTA has designed a loan program to provide loans to pre-qualified MTA Small Business Mentoring Program (SBMP) and MTA Small Business Federal Program (SBFP) construction contractors from $150,000 through the SBMP and up to $900,000 through the SBFP. To date, our partner bank has approved over 104 loans totaling more than $14.4 million for small firms through the SBDP.

Take this unique opportunity to learn how the MTA’s Loan Program can help your business get the capital it needs to advance to the next level in the construction industry.

Loan Parameters

There are several loan parameters that may be applied to your specific loan.

Loan Repayment Terms

  • Unsecured time loans up to 30% of contract value, reviewed and approved within 10 business days.
  • Loans up to $150,000 through the MTA Small Business Mentoring Program and loans up to $900,000 through the MTA Small Business Federal Program.
  • Moderate interest rate vs. typical rate for small contractors.
  • Contractors pay an application fee.
  • Loans typically mature within six months.
  • Repayment schedules are structured in conjunction with the Construction Managers.
  • Typically, loans are structured to be repaid by 75% of contract completion.
  • The MTA issues payments to a contractor’s Carver bank account.

Access to Bonding

Securing a bond is the pivotal next step in every construction contractor’s successful growth. The MTA Small Business Bonding Program is a groundbreaking program that is launching a new initiative for assisting small construction contractors who request such assistance, to secure their first bond or increase their bonding capacity.

The MTA Small Business Bonding Team leadership is made up of MTA professionals and a team of experienced construction bonding professionals who have a proven track record in assisting small construction contractors to acquire and increase their bonding capacity. MTA’s consultant for the program is Willis, a global leader in risk management solutions. Centaur Insurance Services Inc., a locally-based strategic bonding consultant, is the insurance agent for the contractors; and ACE is the insurance company.

The Bonding Team works with individual SBMP contractors in a planned series of activities to provide individualized support to each SBMP contractor who requests bonding assistance.

The Program is tailored to each contractor. The MTA Small Business Bonding Program starts with an analysis and evaluation of each SBMP firm’s strengths and weaknesses. The Bonding Team then works with each firm to identify its specific bonding needs and map a path for success. Another important part of this process is the identification of the firm’s appropriate professional services support team. This includes an accountant, attorney, banker and bonding specialist who serve as strategic partners to help shape and guide a firm’s growth. The Bonding Team supports this process with its experience and negotiating skills to assist each firm to apply for and obtain the bonding capacity it requires.