The U.S. Department of Transportation’s (USDOT) Office of Small and Disadvantaged Business Utilization (OSDBU) has launched U.S. DOT Connect to Capital, a new component of a comprehensive Access to Capital Initiative to help small businesses increase access to private equity capital investors.
U.S. DOT Connect to Capital is an online portal that serves as a database of Small Disadvantaged Businesses (SBDs), Disadvantaged Business Enterprises (DBEs) and capital investors licensed by the SBA Small Business Investment Company (SBIC) program, which allows investors to connect with small businesses seeking to attract private investments.
USDOT notes the ability to access capital is one identified barrier to building capacity and increasing SBDs/DBEs participation with federally funded contracts. The overall initiative and new platform are designed to be a holistic approach to assisting SDBs/DBEs by increasing their awareness and understanding of capital fundamentals and the various aspects of capital, as well as increasing their ability to expand their businesses significantly through private investment, which will in turn better enable SDBs/DBEs to take advantage of the myriad of business opportunities stemming from the Infrastructure Investment and Jobs Act.
U.S. DOT Connect to Capital allows SDBs/DBEs to securely input their business information, indicate their interest in connecting with potential investors and provide a single stop clearinghouse for private investors to search for small businesses that match their investment interests. Additionally, as it is part of the Connections MarketPlace (CMP) platform, users can seamlessly access business development symposiums, webinars, panel discussions and meetings.
“U.S. DOT Connect to Capital provides users with a comprehensive platform to help small and disadvantaged businesses grow through private equity,” said OSDBU’s Acting Director Tyra Redus. “It is a mutually beneficial resource for small businesses and for investors because of its national scope, which decreases barriers to information on both sides and facilitates direct interaction. U.S. DOT Connect to Capital augments the connections marketPlace by making it possible for small businesses to have real-time interaction with each other and with private investors.”
In addition, U.S. DOT Connect to Capital will include direct interactions with OSDBU’s Small Business Transportation Resource Centers (SBTRCs) across the nation. SBTRCs provide business counseling that includes market research, training, certification and procurement technical assistance. All services are provided free of charge, which USDOT notes supports OSDBU’s strategic goal to promote wealth creation and expand business growth opportunities to all Americans.
U.S. DOT Connect to Capital provides a virtual platform for investors and SDBs/DBEs to be introduced and interact in a way that may lead to investment opportunities.
“We’re excited about the launch of the U.S. DOT Connect to Capital virtual platform. As an active investor in several transportation industry companies, we look forward to participating and finding new opportunities to provide capital solutions to disadvantaged businesses,” said Sengal Selassi, CEO and founder of Brightwood Capital Advisors, LLC. “U.S. DOT Connect to Capital will allow users to do that in real time.”
The DBE and Airport Concession DBE programs are part of USDOT's wealth creation priorities. The program requirements are applicable to aviation, highway and transit assisted contracting and in the airport concessions industry. On April 9, USDOT published its final rule that removes barriers that impede the success of disadvantaged firms in their trade and industry. The amendments improve prompt payment requirements, make it easier and faster for firms to become certified in multiple jurisdictions and improves data collected and submitted to USDOT to increase our awareness of how the program operates with optimal efficiency and effectiveness. The rule becomes effective on May 9.
