In 2009, an Arizona Construction Company was awarded a $5.6 million Epoxy Flooring Contract for the Dallas Cowboy Stadium by Manhattan Construction Company while our economy was experiencing a serious downturn where banks were not extending credit to businesses.
Shortly after the Contractor started working on this project, they went to their Bank to request funds from their Line of Credit to cover payroll. Unfortunately, their Bank was closed by FDIC and their Line of Credit was cancelled. After being told by several Banks that they were not lending money, this Contractor was referred to CAFI for financial support.
The contractor met with CAFI on a Wednesday & within a matter of hours, CAFI was able to approve this Contractor for it finance program, fly to Dallas on Thursday to meet with Manhattan's Management, and proceeded to fund their payroll early Friday morning. CAFI continued to fund their payroll until the project was successfully completed eight months later.
CAFI played a major role in providing financial support to Minority-Owned Construction Companies during the Military Base Re-Alignment that took place at Fort Bliss, Biggs Army Airfield, El Paso, Texas and White Sands Missile Range, New Mexico.
The Corp of Engineers awarded projects totaling over several billion dollars to Government Military Housing (GMH) and Centex Home Builders and later, Balfour Beatty Construction to rebuild most of the Housing and training facilities for our military troops.
Construction projects included the construction of 3,000 + new homes, a modern shopping center on Fort Bliss, BOQs and vehicle maintenance facilities to name a few projects.
The local banking community offered minimal financial support to all contractors that were pursuing work on the base re-alignment.
The payment cycle from their invoice date to their payment date averaged 45 to 60 days. Most of the contractors needed financial support from CAFI while they waited to get paid. This project was behind schedule when it started and put a lot of pressure on their contractors to meet their demanding time lines set by the Corp of Engineers. Financing payroll needs became a vital part of this project.
CAFI funded over $40 million in Invoices from beginning to end of this project. All of its contractors successfully completed their contracts on time. CAFI and its customers and were paid 100% of all monies that were due and owed over this five year period.
CAFI and its employee's took a lot of pride in helping these contractors successfully build quality homes for our troops and their families while training for war in IRAQ and Afghanistan.
Clark McCarthy Healthcare Partners II was awarded this Billion dollar project by the U.S. Corp of Engineers to build a new VA Hospital in El Paso, Texas in order to provide medical services for the large Retired Veteran Population in the immediate area.
CAFI wrote a Commitment Letter to the U.S. Small Business Administration in support of an 8(a) SBA Contractor that was bidding on this government project.
Our contractor was awarded a contract in excess of $900,000 as result of our support. Unfortunately, this project is over a year behind plus all payment applications are being paid 60 days on average.
Due to slow payments, our customer is relying more on our program to supplement their cash flow while they wait to get paid.
One of CAFI's Epoxy Flooring Contractors was awarded a $1.5 million contract to apply Epoxy throughout the new Florida Marlin Stadium.
Customer funded progress invoices to cover their labor and Epoxy costs to complete their project.
General Contractor was familiar with CAFI's funding program and agreed to allow CAFI to fund their contractor's progress invoices on this project.
CAFI's customer successfully completed this project on time.
A CAFI Electrical Subcontractor was invited by Clear Channel Outdoor Signs to bid on a one-year project to re-wire and replace LED Lighting on over 400 signs in the El Paso Area.
Our customer lacked the financial capacity to pursue this project because he did not have the ability to finance a $40,000 Boom Truck and did not have the capital to cover his weekly payroll needs for one year.
We met with the Southwest Regional President of Clear Channel and worked out an Assignment Agreement which directed all payments on this project directly to CAFI. We issued a letter of commitment to Clear Chanel to fund this project.
Fortunately, our customer was awarded this project and CAFI agreed to finance the $40,000 Boom Truck for a one-year period and provided weekly payroll by funding weekly progress invoices as they were approved for payment by Clear Channel.
Our customer successfully completed his project in one year and paid his Boom Truck off within the first six months.