Success Story: Spearhead Construction, LLC
Spearhead Construction, LLC (“Spearhead”) is a specialty construction firm with all the components of a successful venture: a business plan targeting a specific need, experience and skilled leadership. Spearhead also has access to the capital it needs to leverage opportunities to grow – thanks to its relationship with New York Business Development Corporation (NYBDC).
Owner Andee Hidalgo is a graduate of the United States Military Academy at West Point, NY. After a successful career in the U.S. Army, she took on various corporate leadership roles. It was only after she helped a colleague with a complicated home renovation that she realized her true passion laid in design, architecture and construction. Andee quickly learned that the “mission focused skills” she acquired in the military lent themselves well to construction. To become more knowledgeable, Andee pursued her Masters in Architecture and launched her business.
Following an extensive vetting process, Andee met the requirements for her company to be certified in NY State as a Minority- and Women Owned Business Enterprise (M/WBE) and a Service Disabled Veteran Owned Business (SDVOB) at both the State and Federal levels. Possessing all three certifications, Spearhead is in a unique position to assist General Contractors needing not only outstanding craftsmanship and project management, but to meet participation goals for M/WBE and SDVOB companies.
With a solid plan in hand, Andee identified key leadership positions that would comprise the nucleus of her company. She immediately hired a Chief Operations Officer then identified two Project Managers to handle the anticipated influx of requests for bids, but needed working capital to commence hiring. Luckily, Andee learned about NYBDC at a local MWBE outreach event during a presentation by an Empire State Development representative. Although Spearhead was a startup, NYBDC recognized its advantages, including an owner with excellent business experience, leadership and a sound business plan. “NYBDC was a great fit for us because our loan officer, Steve Willard, was incredibly knowledgeable on offerings for startup companies that are also SDVOB and MWBE certified,” Andee explains.
NYBDC approved a working capital loan of $150,000 for Spearhead under its Veteran Loan Program, which is made possible by the New York State Common Retirement Fund. With the capital in hand, Spearhead has already brought one of its planned project managers on board, extended an offer to a second, and is currently bidding on large contracts for transportation hubs, schools, medical centers and casinos.
The future is bright for Andee and her growing team, and she now has a trusted partner in NYBDC. As Spearhead ramps up, she’ll be able to leverage other NYBDC loan programs to meet project based, labor and materials expenses. “Spearhead Construction is not a hobby for us,” says Andee. We are less interested in chasing one job after the next; instead, we are building a company. Early on, it was important to establish the infrastructure to scale our business. Access to capital was vital to that process as well as our future growth and credibility. We are grateful to have a partner in NYBDC as we begin our journey.”
Through the cooperative efforts of its lending partners, New York Business Development Corporation (NYBDC) promotes and advances the business prosperity and economic welfare of New York State by providing small business loans. Throughout its 60-year history, NYBDC has provided thousands of small businesses, including start-ups, mature businesses, and minority- and women-owned businesses, with access to loans when they do not meet the requirements for traditional financing. Learn more at www.nybdc.com.
Together with affiliates Excelsior Growth Fund (www.excelsiorgrowthfund.org) and The 504 Company (www.the504company.com), NYBDC offers small businesses access to suite of financing options that includes SBA 504, 7a and Community Advantage loans, as well as online alternative loans.