Airport Experience® News - ACDBE 2023

A second RFP opportunity under this programwas in the works at press time. If all goes well, this is likely to become standard operating procedure at RDU. “Barring finding terrible things that happen that we just don’t know about right now, we think that this is the way we will go forward,” Carter says. “There will be things that we come to find out about how this works and how this doesn’t, and I think that’s okay, but in terms of making sure ACDBEs have an opportunity to do business directly with the airport, I think that was successful,” she says. Intensive Outreach Denver International Airport (DEN) , as part of its “Vision 100” strategic plan has upped its efforts to support an already diverse, inclusive environment, says Pam Dechant, senior vice president of concessions. It has upped an already robust series of outreach events around navigating the ACDBE program or meeting potential prime partners. Nearly 800 people attended several events through the first four months of 2023. “The Commerce Hub has increased efforts drastically,” she says. “We’re providing at least two opportunities to network and learn every month.” Education efforts are also being bolstered at DEN as the airport prepares to introduce the Business Development Training Academy, which will offer classes aimed at helping small businesses and ACDBEs be successful. The airport is working with all its stakeholders to develop the curriculum, which is expected to be finished soon in hopes that it will benefit those planning to bid in several upcoming RFPs. “The purpose of this is to build a curriculum that can support future small businesses and ACDBEs throughout the lifecycle of doing business at the airport,” Dechant says, adding that the idea is for these courses to help people at all levels of the program be successful. Finally, the airport has added equity and inclusion as a scored category in its RFPs, implemented a program where those with existing contracts can get them extended if they reach andmaintain excellence in several categories. DEN has been working with the Regional Transportation District to achieve for small businesses a significantly reduced cost program previously available to only larger primes and airlines who employ workers at DEN.

CAPITAL ACCESS Lendistry Offers One Option For Cash-Strapped ACDBE Firms

BY C AROL WARD

No matter how much outreach airports and prime operators do, one perennial problem for ACDBE operators and other small businesses is access to capital. In order to be certified as an ACDBE, owners must meet rigorous criteria that includes a limit of personal net worth not exceeding $1.32 million. The challenge, of course, is that today’s typical concessions opportunity requires a significant capital outlay, and lenders want to see a net worth and collateral assets exceeding the limit. Lendistry is one of a handful of lenders equipped to assess concessions operator loans through a different lens. Launched in 2018, Lendistry has an approach that allows it to circumvent a lot of the issues other lenders encounter, according to Rutger Choquehuanca, vice president and business development manager. “The way that we overcome a lot of the

collateral shortfall or the lack of the net worth of the individual is we partner a lot with the prime contractors,” Choquehuanca says. “When the prime goes to pay their quarterly or monthly distribution, we set up what’s called a custodial account. The funds will flow into that account, we’ll take our payment from there and then remit the remainder back to the borrower within three business days. “Because we have that payment direction account and make sure Lendistry is getting paid first, we can overcome a lot of the collateral shortfalls,” he says. Choquehuanca says Lendistry is also in the process of forming a partnership with the

Above: Rutger Choquehuanca of Lendistry says small businesses can get access to capital with the firm’s ACDBE centric loan products.

Airport Minority Advisory Council. The plan is to set up an AMAC-focused capital fund, offering members direct access to Lendistry’s offerings. “We’re really trying to provide not only options in lending but also education,” he says. “There are a lot of misconceptions on getting access to capital and how to go about it.” One area of education is the tax implications on the distributions coming from prime partners. Another is how to access public money that is being made available for small businesses. Lendistry is a community development financial institution (CDFI). “Because we have that distinction we can actually partner with a lot of state guarantee programs,” Choquehuanca says. “States have access to federal funds that they can use to guarantee loans to small businesses,” he says. “We’ve been a very active participant in California since the start of Lendistry. As these other states have got access to capital we’re getting more and more state’s signed up with Lendistry. We can add that state guarantee to these loans for these borrowers which enhances their credit profile.”

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