New York Gov. Andrew Cuomo has launched a statewide surety-bond assistance program in a bid to boost state contracting among small businesses and businesses owned by minorities and women.
The program, which Cuomo kicked off yesterday, is called the New York State Surety Bond Assistance Program. A surety bond guarantees an obligation or contract.
The new program provides letters of credit for up to 30 percent of base contract amounts, depending on the project. The governor’s office expects it to spark $200 million in new bonding over five years.
New York is starting the program because securing credit is a challenge for many small businesses and businesses that are owned by minorities and women, according to a news release from the governor’s office. That can prevent businesses from winning state contracts.
“These steps will level the playing field and open up doors for greater economic opportunity and job growth in communities that need it most,” Cuomo said in the release.
Additional details about the program can be accessed online at http://esd.ny.gov/BusinessPrograms/BondingAssistance.html.
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