BuildNOLA

The Program

The Build NOLA Mobilization Fund is designed to connect socially and economically disadvantaged businesses (DBE firms) with access to the capital needed to participate in the abundance of economic opportunity in public and private sector contracting in New Orleans. The fund will provide both mobilization capital for start-up costs including insurance, bonding, equipment and initial labor costs, and/or contract lines of credit to ensure timely payments to suppliers and compliance with David Bacon wage requirements for weekly payment to employees. 
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BuildNOLA Mobilization Fund
The Mobilization Fund is intended to serve DBE firms who are generally underserved by the mainstream capital marketplace. As such, the program design includes risk-reduction strategies including:
  • A dual payee system with invoices payable to the DBE firm and NewCorp. 
  • A third-party funds administration program for firms that need back office support for payment of suppler invoices and weekly payroll.
  • A construction project manager that will provide pre-loan contract analysis, pre-loan pricing and project budget review, prime contractor interface and post-loan contractor technical assistance. also, the construction project manager will act as a liaison between the contractor, the borrower and NewCorp.
For the DBE firms the program design includes access to technical assistance to build the capacity of the business owner to manage government contracts.

Program Eligibility Requirements
Eligibility Requirements
The Mobilization Fund will be available to all DBE firms that meet the following eligibility criteria:
  • Certification as a DBE firm
  • Eligible to do business in the City of New Orleans
  • Tax clearance with the City of New Orleans and a valid Occupational License
Underwriting Criteria
  • No Chapter 7 Bankruptcy within a 12 month period
  • No default on a loan to the participating lending institution(s)
  • Minimum Credit Score of 500
  • Qualification is specific to a bid or construction project 
Loan terms
  • Loan Amount: $50,000 to $250,000.00
  • Loan Type: Interim Construction Loan/Line of Credit or Bond Guarantees
  • Use of Funds: Finance direct operating costs for construction/professional services contracts
  • Loan Rate: 10% Fixed; accrued interest payable monthly
  • Loan Term: Equal to contract term
  • Fees: 1% of Loan Amount
Mobilization Fund Process
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