§ 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.