Program to help local entrepreneurs work on largest project in agency history
As the CTA begins the largest construction project in its history, the $2.1 billion Red and Purple Modernization (RPM) Phase One project, the agency announced the launch of its “CTA Building Small Businesses Program,” a new, innovative program designed to increase small business participation in RPM and other large-scale construction projects by ensuring local entrepreneurs have the financial guidance, support and resources to bid on City contracts.
The “CTA Building Small Businesses Program” was developed to provide financial guidance to small businesses and other DBEs by offering direct loan placement and other supports so they can demonstrate the up-front capital needed to compete on large-scale transportation construction and capital programs.
“Chicago was built by small businesses more than 180 years ago, and if we want to continue building on sustainable, affordable and reliable access to transportation options in every neighborhood, we have to start by ensuring our local entrepreneurs are a key part of that vision,” said Mayor Lightfoot.
“CTA knows first-hand that Chicago’s small businesses are the backbone of our communities, and I applaud President Carter for launching a groundbreaking inclusive process to provide the resources and tools necessary to stay on the right track and work with the City on large-scale projects so we can continue building a better Chicago together.”
“We’ve heard from many small businesses that it can be extremely difficult and intimidating to bid on large projects,” said CTA President Dorval R. Carter, Jr. “What is groundbreaking about the ‘CTA Building Small Businesses Program’ is its holistic, step-by-step approach to help DBEs build the financial capacity and the business acumen to work on large projects for CTA and across the state.”
The program has been created through a partnership between the CTA, RPM contractor Walsh-Fluor Design-Build Team, and the Local Initiatives Support Corporation (LISC Chicago). The program consists of free capacity-building workshops for small businesses that are certified as Disadvantaged Business Enterprises (DBE) or that are interested in becoming DBE-certified.
The program provides one-on-one financial guidance and helps with pre-qualifying for loan packages. Firms that do not immediately pre-qualify for financing will be given access to direct loan placement for financial needs like mobilization, working capital for payroll, equipment and other cash flow needs. The program includes education on insurance and bonding. Qualifying firms can also receive back-office support, technical assistance and other business training.
The “CTA Building Small Businesses Program” is made possible in partnership with LISC Chicago, a leading community development support organization. LISC brings a network of neighborhood financial opportunity centers and other partners to provide financial education, financial products to build credit and assets and a network of community partners to offer technical assistance for these small businesses.
LISC is leveraging support for this program through its Entrepreneurs of Color Fund, a partnership with JPMorgan Chase, Fifth Third Bank, US Bank, Providence Bank and First Midwest Bank, to provide flexible and low-cost loan capital to minority entrepreneurs on Chicago’s south and west sides.
In addition, the Businesses of Color Partnerships Fund led by the Chicago Community Trust, The Coleman Foundation, JPMorgan Chase Foundation and Robert R. McCormick Foundation is providing grant funding to support the program.
“The Walsh-Fluor team is working hard to help these small businesses succeed,” said Project Executive David Shier.
For more information about the project, contact the CTA’s Diversity Department by emailing [email protected] or calling (312) 681-2600.
