GOVERNMENT CONTRACT FINANCING
SouthStar Capital has a team of dedicated sales and operations personnel that specialize in providing working capital solutions to Prime and Sub-contractors for State, Federal and Municipal government projects. We custom tailor our solutions to provide our clients with the growth capital needed to fund task orders, as well as any other capital needs for contract completion.
Government Contracting Opportunity
The United States Federal Government is the largest Debtor in the country, but operates differently than your typical public or large private company. Rapid growth can occur once a contract is awarded or once task orders are issued causing excitement. This excitement is typically followed by a reality check and the question; How can I meet my payroll, vendor, and other obligations of my company while this project is being completed? The answer is SouthStar’s Government Contract Funding Vehicle.
The Federal Assignment of Claims
The Federal Assignment of Claims outlines how a Government Contractor may assign monies that are due under a Federal Contract. Obtaining an approved Assignment of Claims is a detailed process that SouthStar operations department has the qualification and experience to navigate through. In addition to an Assignment of Claims, a Contract Modification may need to be obtained as well. Once the above are in place the verification and funding process is quick, typically 24 hours. It is important to work with a financial institution that understands the intricacies of the Federal Assignment of Claims, Contract Modifications, and communicating with Contracting Officers.
Contract Vehicles and Small Business Programs
There are various Federal Contract Vehicles that SouthStar’s clients have used to secure work with the Federal Government and Department of Defense to include: IDIQ’s, BOAs, Task Orders, GSA Schedule, ENCORE II, SeaPort-e and DHS Eagle, just to name a few. Southstar has experience with multiple contracts allowing us to quickly and efficiently structure our clients a financial solution.
There are a variety of programs and qualifications tailored to small businesses who wish to work with the Federal Government. The below qualifications receive special treatment on certain Federal Contracts:
- WSOB – Women Owned Small Business
- HUBZONE – Historically Underutilized Business Zone
- 8(a) Certified Small Disadvantage Business
- VOSB – Veteran Owned Small Business
- SD-VOSB – Service-Disabled Veteran Owned Small Business
“After being turned down by five banks, we accepted the fact that we would have to pass on the project. Then SouthStar Capital met with us and put together a finance strategy for getting us the cash we need. They had all the answers to our questions, and their rates were very reasonable.”
– Doug, Owner of a Steel Fabrication Plant