N.Y. Urban Development Corporation Act 174/68 § 16-f: Bonding guarantee assistance program

§ 16-f. Bonding guarantee assistance program. (1) Program created.

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 corporation shall provide and may refer such businesses to

the department of economic development 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 this act or the department of economic development 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 corporation shall by rule

establish criteria for such program, such criteria to include detailed

provisions for eligibility.

(b) The corporation shall promulgate rules and regulations to

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

director of the budget.

(3) Funds. Funds for this program shall consist of such amounts as may

be appropriated, any repayment of funds made available under this

program, and any interest earned by the corporation from the investment

of moneys from this program.

(4) Nonapplication of certain provisions. The provisions of section

ten and subdivision two of section sixteen of this act shall not apply

to assistance provided under this program.