Connecticut Motor Vehicle Dealer Bonds

New legislation would reduce the license bond required for used motor vehicle dealers from $50,000 to $20,000.

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New York Debt Collection Agency Bond

New legislation was recently introduced that would require debt collection agencies to be licensed and post a surety bond, contract of indemnity, or an irrevocable letter of credit that must be payable to the people of New York. The bond amount would be based on the number of persons employed by the licensee. A $10,000 bond would be required for one to four employees; a $25,000 bond for five to nine employees; a $50,000 bond for 10 to 20 employees, and a $75,000 bond for 20 or more employees. The bond would secure the licensee’s compliance with the applicable law and the payment of all costs and penalties. The surety’s total liability would be limited to the face amount of the bond, regardless of the number or nature of claims made against the bond or the number of years the bond remained in force.

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US Government Hearing On Minority Contracting Issues

Last month, the Government Management, Organization and Procurement Subcommittee of the U.S. House Committee on Oversight and Government Reform held a hearing on minority contracting issues. The Subcommittee discussed existing federal programs for minority-owned business enterprises (MBE) and disadvantaged business enterprises (DBE), as well as the challenges that these businesses have faced. The testimony featured one panel including the Small Business Administration (SBA) and the Minority Business Development Agency of the Department of Commerce (MBDA), and representatives of minority and small business development divisions within the Departments of Transportation (DOT) and Defense (DOD) and the General Services Administration (GSA), and another panel of minority contractors.

The testimony of the federal agencies focused on what the agencies had done to help MBEs and DBEs and the continuing challenges the contractors face. Largely, the government witnesses focused on a lack of access to capital. David Hinson, National Director of the MBDA, which is an agency of the Commerce Department, noted that it is working on a surety bonding initiative with a goal of identifying $100 million in private capital through a public-private partnership and to grow to $1 billion over time.

The panel of minority contractors and legal experts included representatives from the Minority Business Enterprise Legal Defense Fund, Mid-Tier Advocacy, the Airport Minority Advisory Council (AMAC), the Associated General Contractors of America (AGC) and the Thelton E. Henderson Center for Social Justice at Berkeley Law. Most of these panelists stated that discrimination generally existed in all aspects of contracting, including contract formation, awards of contacts, bonding, insurance and credit.

Other key issues addressed during the panel of minority contractors were contract unbundling, multi-tier subcontractors counting toward small business participation goals, small business size standards and prompt pay requirements. In written testimony, the Minority Business Enterprise Legal Defense Fund noted that minority-owned construction firms were not able to meet bonding requirements, which constrained their participation in federal contracting opportunities. The written testimony stated that insurance brokers lack incentive to serve the minority construction firms, whose contracting opportunities are generally smaller in size.

Surety Bond Associates provides specialty surety bond services to small, minority and women owned contractors designed to eliminate the barriers that prevent them from accessing the financial resources necessary to actively compete.

Contact Us to learn more about our Surety Support Services

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Women-Owned Small Business (WOSB) Contracting Program

The long anticipated and landmark Small Business Act was recently passed, which authorizes federal contracting officers to specifically limit, or set aside opportunities for women-owned small businesses (WOSBs) or economically disadvantaged women-owned small businesses (EDWOSBs). Although the Small Business Administration has issued a final rule on the WOSB program, it will not be effective for several months.

To qualify as an EDWOSB or WOSB, the 51 percent ownership must be unconditional and direct. In addition, the management and daily business operations of the concern must be controlled by one or more economically disadvantaged women (for EDWOSBs) or women (for WOSBs).

WOSBs and EDWOSBs will be required to self-certify their status in the Central Contractor Registration (CCR) and the Online Representations and Certifications Application (ORCA) as other small businesses do, and will also be required to post certain documents to the WOSB Program Repository.

There are eighty-three NAICS codes designated as eligible for Federal contracting under the WOSB Program, of which forty-five in which WOSBs are underrepresented and thirty-eight in which WOSBs are substantially underrepresented. The anticipated award price of contracts eligible for this program cannot exceed $5 million in the case of manufacturing contracts and $3 million in the case of all other contracts.

Surety bond will be required on all construction contracts awarded over $100,000, and WOSBs are encouraged to get Prequalified for bonding ahead of time.

Surety Bond Associates makes it easy to get Prequalified. Simply Apply Online, or Contact Us TODAY!

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SBA Surety Bond Guarantee Program Increases

President Obama’s Economic Stimulus Plan is bringing billions of dollars to government agencies for spending, along with surety bonding assistance to enhance contractor’s bidding capacity. In addition, the limit on the US Small Business Administration’s (SBA) surety bond guarantee has increased from $2 million to $5 million under the Economic Stimulus Plan, and can be increased to as much as $10 million for certain federal contracts.

Airport, highway, road and transit projects funded by the stimulus plan represent an important opportunity for construction firms all over the country to create jobs and literally build a stronger economy. Contractors who have surety bonding will be in a better position to benefit from the stimulus spending.

If you’re having difficulty getting the surety bonds you need to support your projects, if future growth depends on expanding your bonding capacity, or if you simply need better service and turn around, you should know that Surety Bond Associates specializes in helping contractors like you. We also have access to a number of special programs for emerging contractors, including the SBA Surety Bond Guarantee Program.

It’s easy to get started. Simply Apply Online, or Contact Us TODAY!

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