§ 1838 — Bonding guarantee assistance program

New York § 1838

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 8: New York Job Development Authority
• Subtitle 7: Special Project Development
• Art. 8: Miscellaneous Authorities

Text

§ 1838. Bonding guarantee assistance program. 1. There is hereby\ncreated a state bonding guarantee assistance program to enable small\nbusinesses, and minority-owned and women-owned business enterprises,\ncertified as a minority-owned or women-owned business enterprise\npursuant to article fifteen-A of the executive law, to meet payment\nand/or performance bonding requirements by providing additional\nfinancial backing needed to induce a surety company to issue a bond for\nconstruction projects, including but not limited to, government\nsponsored, transportation related construction projects. For purposes of\nthis section, the term small business shall have the same meaning as\ndefined in section one hundred thirty-one of the economic development\nlaw. Such program shall give preference to minority-owned and\nwomen-owned business enterprises and shall:\n (a) make available funds to surety companies providing bonds to small\nbusinesses and minority-owned or women-owned business enterprises in an\namount equal to a percentage not to exceed fifty percent of the face\nvalue of bonds issued by the surety.\n (b) provide technical assistance in completing bonding applications\nfor small businesses and minority-owned or women-owned business\nenterprises seeking to become eligible for bonding in preparation for\nbidding on construction projects, including transportation related\nprojects. The authority shall refer such businesses to the department of\neconomic development and the urban development corporation for technical\nassistance as such businesses may need, including but not limited to:\n (i) a review of the applicants' market and business competitive\nstrategy;\n (ii) consultation and review of the development and planned\nimplementation of a working capital budget;\n (iii) assistance with applications for the receipt of funding from\nother financial sources and providing referrals to other appropriate\npublic and private sources of financing; and\n (iv) assistance from the regional offices of the department of\neconomic development, pursuant to article eleven of the economic\ndevelopment law, and the entrepreneurial assistance program, pursuant to\narticle nine of such law, and any other such program receiving state\nfunds from the department of economic development or the urban\ndevelopment corporation or any other state agency that is intended to\nprovide technical assistance to small businesses and minority-owned and\nwomen-owned small business enterprises.\n 2. Criteria and regulations. (a) The authority shall by rule establish\ncriteria for such program, such criteria to include detailed provisions\nfor eligibility.\n (b) The authority shall promulgate rules and regulations to effectuate\nthe purposes of this section which shall be approved by the director of\nthe budget.\n