CONTRACTOR FINANCING ASSISTANCE PROGRAM
“ Access to contract financing is a game-changer for small and diverse contractors in the public works arena ,” notes Ingrid Merriwether , CEO of MWIS . “ The CFAP program directly aligns a funding source parallel to a contractor ’ s cost of performing the work , ensuring peace of mind for both the client and contractor .”
CFAP funding offers benefits for both contractors and municipalities . For contractors , the program provides an alternative to taking out personal loans or using high-interest credit cards . Contractors receiving CFAP funds not only will build capacity to strengthen their businesses , but also use the program to help establish or enhance their credit history , making them more eligible for commercial lending . For municipalities , CFAP increases the number of qualified firms that can pursue contracting opportunities , leading to the submission of more competitive bids and often resulting in lower-priced winning bids , ultimately saving taxpayer money .
Contractors applying for CFAP funds begin with an assessment of their capacity to meet a bid ’ s requirements before actually submitting a bid . The assessment identifies the expected contract cash flow requirements for project labor , materials and other contract-specific costs , with pre-approval for funds issued upon completion of the assessment . If the contractor is subsequently awarded a contract , a CFAP loan is then approved , with funds released for contract expenses as needed .
Loans are issued at a fixed 6.25 % annual percentage rate ( APR ), plus a 1 % origination fee . Funding is available up to $ 250,000 , but larger amounts can be considered on a case-by case basis .
Small and diverse contractors are encouraged to access this opportunity – we want to hear from you !
For more information about the Contract Financing Assistance Program , contact MWIS at 213-258-3000 or mwisinfo @ imwis . com .
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