On Tuesday, the U.S. Department of Transportation said its Office of Small and Disadvantaged Business Utilization (OSDBU) had launched a new initiative to connect small and disadvantaged businesses to private equity capital investors.
The program, U.S. DOT Connect to Capital, is part of the DOT’s Access to Capital Initiative to help small and disadvantaged businesses increase their access to capital investors. The online portal enhances the new Connections Marketplace (CMP) platform with a database of Small Disadvantaged Businesses (SDBs), Disadvantaged Business Enterprises (DBEs) and capital investors licensed by the SBA Small Business Investment Company (SBIC).
“U.S. DOT Connect to Capital provides users with a comprehensive platform to help small and disadvantaged businesses grow through private equity,” OSDBU’s Acting Director Tyra Redus said. “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.”
Accessing capital has been identified as a barrier to building capacity and increasing SDBs/DBEs participation in federally funded contracts, officials said. The new platform is designed to help SDBs/DBEs by increasing their awareness and understanding of capital fundamentals while increasing their ability to expand their businesses through private investment. The platform will help SDBs/DBEs take advantage of opportunities arising from the Bipartisan Infrastructure Law, officials said.
Connect to Capital will let SDBs/DBEs input their information securely, indicate their interest in connecting with potential investors and provide a clearinghouse for private investors to search for small businesses that match their investment interests.
Additionally, businesses will be able to connect to free business development symposiums, webinars, panel discussions and meetings, as well as interact with OSDBU’s Small Business Transportation Resource Centers across the country.