CTA aims to support small business contractors

The Chicago Transit Authority (CTA) last week announced the launch of a program designed to increase small business participation in its large-scale construction projects by providing local entrepreneurs with financial guidance, support and resources to bid on city contracts. 

For some small businesses, working on a large construction project requires resources that many firms don’t have, including cash flow that can enable them to purchase materials ahead of being reimbursed, access to loans and other forms of credit, insurance for larger jobs, and access to IT and administrative supports, CTA officials said in a press release.

The CTA Building Small Businesses Program offers free one-on-one help with prequalifying for loan packages and direct loan placement for small businesses that are certified as Disadvantaged Business Enterprises (DBE) or that are interested in becoming DBE-certified.

The program also offers education on insurance, bonding, back-office support, technical assistance and other business training.

Forty-five businesses have participated in the program, with multiple participants pursuing loan opportunities and competing for work on the first phase of the $2.1 billion Red and Purple line modernization project. Two program sessions will also be held later this week in Chicago.

“We’ve heard from many small businesses that it can be extremely difficult and intimidating to bid on large projects,” said CTA President Dorval 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.”

CTA created the program in partnership with the Walsh-Fluor Design-Build Team and Local Initiatives Support Corp.