We Are Building relationships with SBA 8(a) Minority and WOMEN-OWNED businesses to help them qualify for government CONTRACTS to build or upgrade infrastructure in the US.
Becoming a CapitalTech teaming partner can be a great way to expand your business and take on larger projects, or start a new line of business that you might not be able to handle on your own. If you are Looking to Partner with Prime Contractors having CapitalTech on your team can bring a lot of benefits to the table.
Here are a few things to consider if you’re thinking about becoming a teaming partner:
Determine your goals: Before you start looking for a potential government contract you need to determine what you hope to achieve through teaming. Are you looking to expand your business? Take on larger projects? Offer a wider range of services? Knowing your goals will help us to identify how we can help you achieve them.
Finding compatible Prime Contractors: When looking for Prime Contractors it’s important to find firms that share your values, work ethic, and commitment to quality.
Developing a strong relationship: A successful teaming partnership is built on trust, communication, and mutual respect. Take the time to get to know your potential partners and develop a strong relationship before you start working together. This will help ensure that you’re on the same page and can work together effectively.
Identify roles and responsibilities: Once you’ve found a compatible partner, it’s important to identify each firm’s roles and responsibilities. This will help prevent confusion and ensure that everyone is clear on what they’re responsible for. You’ll also want to establish clear lines of communication and decision-making processes.
Have a written agreement: Finally, it’s important to have a written agreement in place that outlines the terms of your partnership. This should include details on how profits and expenses will be shared, how disputes will be resolved, and how the partnership can be terminated if necessary.
Becoming a teaming partner can be a great way to grow your business and take on larger projects. Just be sure to take the time to find compatible partners, develop a strong relationship, and establish clear roles and responsibilities before you start working together.
How the program works:
SBA (8a) Minority-Owned Contractor- Revenue Share Program
CapitalTech enters into a revenue-sharing agreement (RSA) with an SBA (8a) minority-owned contractor, structured to benefit both the fund and the contractor. Here’s a description of how such a program might work and the benefits it could offer:
- Program Structure:
- Parties Involved: The program involves CapitalTech (the “Fund”) and an SBA (8a) minority-owned contractor (the “Contractor”).
- Revenue Sharing Agreement (RSA): The Fund and the Contractor enter into an RSA that outlines the terms of their partnership. The RSA specifies that the Contractor will share a portion of its gross revenue with the Fund in exchange for the capital provided by the Fund.
- Capital Deployment: The Fund provides capital to the Contractor, which the Contractor can use to expand operations, or meet other contract requirements.
- Benefits for the Fund:
- Revenue Generation: By entering into an RSA with the Contractor, the Fund can generate a steady stream of income through its share of the Contractor’s gross revenue.
- Diversification: The Fund diversifies its investment portfolio by including a revenue-sharing component, which can provide a hedge against market volatility.
- Supporting Minority-Owned Businesses: The Fund demonstrates its commitment to supporting minority-owned businesses by partnering with an SBA (8a) contractor, aligning with its mission to support minority- and women-owned contractors.
- Benefits for the Contractor:
- Access to Capital: The Contractor gains access to much-needed capital without having to rely solely on traditional loans or financing methods, which can be challenging for small businesses, especially minority-owned ones.
- Flexible Financing: Revenue sharing allows the Contractor to repay the capital based on its actual revenue, providing flexibility compared to SBA guaranteed loan programs that can strain cash flow.
- Partnership with an Established Fund: Partnering with CapitalTech can provide the Contractor with not just capital but also potential networking opportunities, mentorship, and expertise in navigating the business landscape.
- Shared Benefits:
- Aligned Incentives: Both parties have aligned incentives for the success of the projects or initiatives financed by the capital, as the Fund’s return is tied to the Contractor’s revenue performance.
Overall, the program offers a win-win situation where the Fund gains a new revenue stream while supporting a minority-owned business, and the Contractor gains access to capital and a valuable partnership that can aid its growth and success.