N.Y. Public Authorities Law § 1838: Bonding guarantee assistance program

§ 1838. Bonding guarantee assistance program. 1. There is hereby

created a state bonding guarantee assistance program to enable small

businesses, and minority-owned and women-owned business enterprises,

certified as a minority-owned or women-owned business enterprise

pursuant to article fifteen-A of the executive law, to meet payment

and/or performance bonding requirements by providing additional

financial backing needed to induce a surety company to issue a bond for

construction projects, including but not limited to, government

sponsored, transportation related construction projects. For purposes of

this section, the term small business shall have the same meaning as

defined in section one hundred thirty-one of the economic development

law. Such program shall give preference to minority-owned and

women-owned business enterprises and shall:

(a) make available funds to surety companies providing bonds to small

businesses and minority-owned or women-owned business enterprises in an

amount equal to a percentage not to exceed fifty percent of the face

value of bonds issued by the surety.

(b) provide technical assistance in completing bonding applications

for small businesses and minority-owned or women-owned business

enterprises seeking to become eligible for bonding in preparation for

bidding on construction projects, including transportation related

projects. The authority shall refer such businesses to the department of

economic development and the urban development corporation for technical

assistance as such businesses may need, including but not limited to:

(i) a review of the applicants' market and business competitive

strategy;

(ii) consultation and review of the development and planned

implementation of a working capital budget;

(iii) assistance with applications for the receipt of funding from

other financial sources and providing referrals to other appropriate

public and private sources of financing; and

(iv) assistance from the regional offices of the department of

economic development, pursuant to article eleven of the economic

development law, and the entrepreneurial assistance program, pursuant to

article nine of such law, and any other such program receiving state

funds from the department of economic development or the urban

development corporation or any other state agency that is intended to

provide technical assistance to small businesses and minority-owned and

women-owned small business enterprises.

2. Criteria and regulations. (a) The authority shall by rule establish

criteria for such program, such criteria to include detailed provisions

for eligibility.

(b) The authority shall promulgate rules and regulations to effectuate

the purposes of this section which shall be approved by the director of

the budget.