Manufacturing group offers access to capital for expansion
DENVER — The Colorado Advanced Manufacturing Association, a member-based trade association, has launched a no-fee digital platform that streamlines access to capital for small manufacturers.
The new loan prequalification tool, which is being piloted in Colorado before being introduced in other U.S. markets and industry sectors, was developed by Austin-based Access Capital Technologies, the digital arm of ACTCapital, a nonprofit organization that works with community lenders and their small business and start-up clients nationwide.
“Manufacturers must automate and advance if they are to meet customer needs and create jobs. However, financing new technologies amid rising interest rates is challenging,” CAMA President Tim Heaton said in a press statement. “Our new access-to-capital tool matches the manufacturer with the most suitable lender, taking time and guesswork out of the loan search process, while allowing businesses to spend more time building the products that make Colorado strong.”
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FirstBank, Key Bank and DreamSpring are among the lenders partnering with CAMA to launch the initiative.
“We know manufacturers are vital to our economy but often deal with workforce and capital challenges,” said Kristen Bernhardt, president of FirstBank’s Northwest Market. “We look forward to helping them find solutions to efficiently operate and grow their business and see the access-to-capital program as one of several ways we’re able to accomplish that.”
Edmond Johnson, board chair of DreamSpring, president and CEO of Premier Manufacturing and a member of CAMA, said the collaboration will result in more micro and small businesses having access to capital. It’s “money they can use to advance technology-driven manufacturing in their facilities.”
The new access-to-capital platform cuts costs for new customer loan origination by nearly 70% and cuts acquisition costs by half, while almost entirely eliminating application rejections, said Luther Branham, co-founder and managing director of ACT.
“ACT provides quick access to the best lending product, interest rates and terms through technology that is easily scalable across different organizations,” Branham said.
Colorado small manufacturers can access the lending platform through CAMA’s website. Applicants will answer a few questions and are then matched with lending programs that best meet their needs, CAMA said in its news release.
This article was first published by BizWest, an independent news organization, and is published under a license agreement. © 2023 BizWest Media LLC.
