President and CEO
Commercial Construction, Inc.
MHCC and CCI, Inc. Rigging for a New Growth!
This month featured Member of the Month is Commercial Construction, Inc., a company that like many other MBE companies, had an opportunity to grow and the need for capital to achieve it. The following is a recent story about collaboration and assistance to reach a new high in their business operations.
A survey conducted by the NMSDC in 2016 revealed that nearly two thirds of all MBE (Minority owned Business Enterprises) were hindered in their ability to grow, hire employee or compete due to a lack of access to capital. This impediment was the result of two primary reasons; either a lack of understanding of all financial options available or not having an established relationship with Finance or Investment Professional.
This is one of the reasons that the HBeX Program (Hispanic Business Excellence Program) was launched by the Michigan Hispanic Fund, the philanthropic arm of the MHCC, in July of 2015 with an endowment from the DTE Foundation. It was intended to assist HBEs (Hispanic Business Enterprises) in forming proper corporate structure, achieving operational efficiency, introduction to business and financial professionals as well as aiding in the procurement process. The objective has been to allow HBEs to increase capacity, grow, and hire with the intent to give back to the Hispano/Latino Community through economic development, training or philanthropy. So far the HBeX Program has engaged over a half dozen HBEs throughout Michigan. The companies ranged in size from $5M – $30M and work in diverse industries such as mechanical contracting, food services and manufacturing. Among those companies is Commercial Construction Incorporated (CCI), whose President and Owner is a long time MHCC Board Member, Robert “Bob” Garcia.
While each MBE company likely has a different set of circumstances that inhibit growth, CCI found itself among the two thirds of all MBE companies that was hindered in its ability to grow because of a lack of access to capital. Throughout a two year period CCI had to turn down some ambitious projects because of not being able to access an increase in working capital or line of credit. It’s at this point that Bob turned to his friends at the MHCC and relied on guidance being provided by fellow Board member Guillermo “Bill” Borquez, VP of Investments with Merrill Lynch, Darin Evans, VP Business Lending, Bank of America and HBeX business consulting company DWH (www.dwhcorp). Over the course of several months CCI worked with these trusted advisors to position his company to be able to successfully increase his line of capital. Earlier this year CCI was successful in increasing their line of credit through Bank of America, who provided a line of credit that was nearly three times that of Garcia’s previous bank. Bob stated “this was a game changer [for CCI] and has positioned us to leap forward”.
The true measure of success for CCI will be gauged in the coming years but the outlook remains positive. While this Michigan summer is providing great chance for us to get out and enjoy, Bob and CCI are busy working hard and 2018 is shaping out to be one of busiest and best years on record for the company. Bob credits his network at the MHCC and lessons learned through HBeX Program for positioning his company for the opportunity to be able to make a ‘leap forward”.
As long as opportunities for growth among the Hispanic Business Community are boundless, the MHCC and HBeX will work to help companies like CCI connect with trusted advisors and grow through operational excellence and access to capital, so that fewer and fewer are inhibited from reaching their goals.
For questions regarding MHCC networking, business development or HBeX please contact Jorge Morales, Executive Director at MHCC.