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This entry was published on 2014-09-22
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Bonding guarantee assistance program
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 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

(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

(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.