SDA and Steans Family Foundation Partnership Helps Businesses Turn Contracts Into Growth
Winning a major contract can be a turning point for a growing business. But for smaller contractors, it can also create a new problem with finding enough cash to, well, actually do the work.
A recent article from The Chicagoland Journal takes a closer look at the Southland Development Authority’s (SDA’s) new partnership with the Steans Family Foundation. A foundation designed to help minority-owned construction firms bridge that gap through access to working-capital financing and business support.
The article highlights a challenge that can be easy to overlook. Contractors may have signed work and employees ready to go, but still have to cover weeks of payroll, materials and other expenses before they get paid. Bonding requirements can put even more pressure on cash flow.
Through the partnership, qualifying businesses will have opportunities to access working-capital loans ranging from $100,000 to $500,000. But the goal goes beyond simply providing financing. The Steans Family Foundation is tying its investments to job creation, particularly for residents of North Lawndale.
The SDA’s Manny Davila also pointed to another important part of the problem. That being that many entrepreneurs reach this stage after already putting significant amounts of their own money into their businesses.
“Our goal is to accelerate the deployment of critical capital to minority-owned construction firms that have the pipeline but lack the working capital or bonding capacity to scale,” Davila said.
These are not necessarily businesses looking for their first opportunity.
Some already have customers, experience and contracts. What they need is the financial capacity. And sometimes the operational support. Both are usually required to turn that opportunity into sustainable growth.
As Davila told the publication, “It’s one thing to get capital, it’s one thing to get jobs, but it’s another thing to know how to manage all of that.”
The partnership will begin with a virtual Power Hour on September 16. Then that will be followed by an in-person event in October connecting vetted contractors with capital partners and developers.
Read the full article from The Chicagoland Journal to learn more about the partnership by clicking here. It explains who the financing is designed to support and how SDA and the Steans Family Foundation hope to turn new contracts into lasting business and job growth.
About the Southland Development Authority
The Southland Development Authority, a not-for-profit economic development organization, is committed to driving equitable and sustainable economic growth in the South Suburbs of Chicago. Through innovative programs, strategic partnerships, and impactful direct investments, the SDA is building a vibrant, inclusive economy that drives wealth growth for individuals, businesses, and municipalities. Combined with the benefits of the South Suburban Land Bank and the Monarch Fund, the SDA serves as a model for regional development.
