BUILDcap: Loans for Contractors

Launched in 2024, BUILDcap boosts capacity for contractors by offering direct pathways to critical resources like affordable loan capital, free or low-cost Business Support Services, and reputable connections in the construction and trades industries.

Supported by a coalition of partners including The Opus Foundation, The Opus Group, and Busey Bank, BUILDcap is a program built from the ground up for the entrepreneurs who power our future.

• Business Type: Licensed contractors (general or specialty trades) operating as sole proprietors, partnerships, LLCs, or corporations.

Loan Terms

• Loan terms are subject to change.

• Loan Amounts: Loan sizes range from $10,000 to $50,000.

• Term Length: Up to 12 months, depending upon the need and project.

• Interest Rate: Fixed rates range from 8.5% to 10.5%.

• Collateral: Assignment of contract, and/or UCC filing on business assets. Other collateral may be considered.

• Value: Loan-to-contract value of 80% when using a contract as collateral.

• Business Support Services: Program enrollment required.

• Required questionnaire regarding the General Contractor/project.

Fees

• Origination fee of 5%

• Other fees may include UCC filings, vehicle lien filings, or title recording fees.

Repayment

• No payments for 3 months with an interest-only period up to an additional 3 months, converting to full amortization for the remaining 6 months.

• Authorization for payment directly to AltCap up to the loan amount.

• Equipment purchases

• Working capital

• Payroll and hiring

• Materials and supplies

• Bonding or licensing fees

Applicants will need:

• Identification, proof of license, liability insurance and business organizational documents

• Business plan (or a detailed loan interview)

• Business financial projections (or specific job projections showing anticipated income, costs, margin, etc.)

• Business financial statement (year-end and most recent YTD interim)

• Two years of business tax returns

• Two years of personal tax returns

• Personal financial statement

• Last 4 months of personal and business bank statements

• Authorization for payment directly to AltCap up to the loan amount.

• Copy of the contract between the subcontractor and the general contractor showing the scope of work and schedule.

• Ensure your financial statements are up to date, accurate, and clearly reflect an understanding of your business operations.

• Craft a detailed and well-supported plan for how you will use the funds. This should include the projected return on investment, whether through potential revenue growth or operational efficiencies.

• Prioritize building relationships with your lenders by maintaining open communication and demonstrating a track record of reliability — this can significantly enhance your chances of loan approval.

• Explore all your options, whether they involve traditional bank loans, SBA loans, or specialized industry-specific funding programs.

• Maintain liquidity and reduce existing liabilities whenever possible to improve the overall financial health of your business and make it more attractive to lenders.

As part of the BUILDcap loan application process, contractors will have access to Business Support Services to ensure they are “loan ready.”

Please visit our webpage to learn more and enroll in a Business Support Services program.

Si necesita un préstamo para pequeñas empresas y necesita ayuda en español, comuníquese con Karina Lopez al (833) 549-2890 o karina@altcap.org.

Small business owners who have questions about the process should contact a Business Development Officer at info@altcap.org or (833) 549-2890.

If you are ready to begin the process, select the Start Application button below and follow the directions to submit your application.

If you have an existing AltCap loan and have questions about your loan terms or if you need to update your information, please contact Viva Young at 816-269-7809 or viva@altcap.org.