Diverse Lending

Fair treatment of minority groups has come a long way from where it used to be, but it still has a lot to overcome in order to continue to improve. Even today, minorities don’t always have access to some of the same opportunities as the population at large, whether it be because of segregation, location, stigma, or other tangible or intangible barriers. Because of the long history of mistreatment and fewer opportunities, the percentage of thriving minority business owners active in the economy is small. Capstone wants to turn that around, and afford minority small business owners every opportunity possible to level the playing field.

Diverse Lending

Minority Small Business Loans

Capstone works both internally and with outside private partners to be able to provide minority small business loans to those who qualify as a minority. During our underwriting process, we ensure that your minority status in no ways hinders your access to getting the much-needed funds for your business that will allow you to grow and reach your goals. When you receive a minority designation from a city, state, or federal level, we can then work with you alongside our Diversity Outreach Program to get you on the path to success. Overcome obstacles with our minority small business loans.

What is Considered Minority?

As a business owner, you would be classified as a minority if you meet any of the following qualifications:

  • Woman
  • Black or African American
  • Hispanic
  • Native American/Pacific Islander
  • Veteran

To be considered the owner, you as the minority must own and operate at least 51% of the business.

Decades ago, minority business owners found it nearly impossible to receive funding for their businesses. Therefore, coming across a minority-owned business was almost unheard of. Though minority-owned businesses now have more opportunities to access third-party capital, the stigma from decades past lingers like a faint scar. Although not explicitly, some lenders or other financial institutions may implement certain practices that deter minorities from getting access to the capital they need. These same institutions may grant a non-minority funding even though they come with the same set of circumstances. At Capstone, we intend never to let that happen, and actively work to ensure that everyone, regardless of ethnicity, disability, or veteran status, has access to funding they deserve if they meet the qualifications. Capstone’s goal is to get more minority participation in the set aside programs by providing much-needed access to capital to this diverse group of business owners.

Unfortunately, we cannot undo the damage that history has done toward minorities. However, we are committed to doing what we can to help. Capstone is here to ease their client’s mind and expedite the healing process by funding contracts and accounts receivable whether the contractor is from the private or public sector. Capstone invests the time, resources and funding essential to your small business in order for you to succeed.

Discover new ways to
fund your business

At every turn, we are committed to educating and supporting you, as needed.

As with any small or growing business, the funding of minority businesses cannot be done without the help of private business and the access to capital. We offer both. Many of our partners have been in your shoes a minority business owner, and have the experience necessary to provide useful advice and feedback. In working with Capstone, you’ll find that we have the capability to provide you with the advice and capital you need – two crucial aspects to your business’s success.

In a recent report assessing New York City’s efforts to award contracts to businesses owned by minorities and women, New York City agencies earned a “D” grade. The report for the fiscal year that ended June 30 included the following statements:

  • 9% of the city’s $17.8 billion procurement budget went to minority and women-owned businesses.
  • This is an increase from 2.7% in fiscal 2013, but a decrease from 5% in fiscal 2012.

It is apparent that New York City is failing to meet the appropriate quotas when it comes to contracting with minority and women-owned firms. Capstone Business Funding, LLC is looking to change these statistics.  We offer several funding options and provide working capital to small businesses and minority-owned businesses looking for the proper funding to help their businesses grow.

It takes more than a minority or disadvantaged designation from a city, state, or federal agency to achieve your business growth and success. But with these designations in hand, you are closer to reaching your goals, and we can give you the extra help you need to grab them. Through our unique solutions, we can help you to overcome those disadvantages.

Once you are a client of Capstone, we extend our years of experience and support system to you.   We provide assistance, as needed, with bid support letters, non-legal contract review and can introduce you to providers of services such as accounting, estimating, legal, engineering, payroll services, etc. while you focus on the working operations of your business. With Capstone working alongside you, you can be rid of the distraction of overcoming barriers due to being considered a “minority,” and can do what you do best.

Minority Lending Program Success Story

A woman-owned construction firm and their clients were suffering from the negative effects of Hurricane Sandy which, in turn, began to put a strain on their cash flow.

The Problem

Because of the disaster, many clients of the business found themselves in a difficult position to pay what was due, but business had to continue. The construction firm needed to eliminate spikes in monthly cash flow due to their client’s payments being delayed after invoicing. As the business progressed, they began having larger payrolls and vendor payments to pay out without knowing exactly when the collection would take place to cover their costs.


The Solution

Capstone helped by implementing single invoice factoring (SIF) that allowed for the flexibility to choose which invoices, if any, to factor during the month. This was especially helpful during this difficult time and allowed for the construction firm to offset the effect that the burden of their clients was having on their operations.

Capstone allowed the construction firm to:

  • Grow without worrying about additional payroll costs prior to funding.
  • Obtain better credit terms.
  • Acquire better discounts with vendors.
  • Get the funding needed for business growth in a matter of hours.

Had the business owner not chosen to reach out to Capstone for assistance in meeting her capital needs, the inability of her clients to pay on time could have been severely detrimental to her success, and her growth potential during that tough time would have been significantly limited.

Results

Since the implementation of SIF, the construction firm has reduced cash flow restrictions and increased volume by 20% over the last 12 months. Without SIF in place, the company would not have been able to take on as many clients as they do now and sequentially grow their business.

Traditional financing proved to be a slow reaction process, whereas Capstone provided the construction firm with a quick response when they needed it most.

Get In The Game! Don’t let being considered a minority owned business hold you back from your goals. As you can see from the case above, Capstone can help you succeed even in difficult times. For more information on our diverse funding programs, please contact us at 347-821-3400 or email info@capstonetrade.com to speak with a representative today. Our highly trained, professional representatives will work with you to obtain a minority business loan and start growing your business today.

Alvin Hartley

CEO/ President

TMI & Partners, Ltd.

To facilitate its Diversity Outreach Program, Capstone has appointed Alvin Hartley, CEO/ President of TMI & Partners, Ltd, to be its Director of Diversity. Alvin Hartley and TMI & Partners, Ltd. has an extensive marketing background including over 25 years of strategic planning and dedicated leadership to TMI & Partners, LTD. TMI assists minority and disadvantaged businesses assemble the resources they need to succeed in today’s hyper-competitive business environment. What better person to assist minority and disadvantaged businesses to help Capstone reach its goal of inclusion. Alvin has worked with many companies to train and align their corporate vision in order to achieve their business objectives. His “In Your Face”, Grassroots Marketing style helps increase brand awareness and corporate sales.