Bonding assistance program launced for Hartford MBEs
Published on 07/29/2013
Last week, Gov. Dannel P. Malloy announced that the Hartford Economic Development Corporation (HEDCo) will allocate $2 million to help Hartford-area minority contractors (MBEs) gain access to surety bonds for capital construction contracts.
According to state rules, 25 percent of funding allocated for public contracts must go to small businesses, and of that 6.25 percent must go to minority-owned businesses, women-owned businesses, or disadvantaged businesses with a net worth less than $750,000.
"Connecticut's small businesses are the drivers of innovation, entrepreneurship, and job creation, and minority-owned businesses play a vital role," Gov. Malloy said. "As the construction industry recovers, it is important that we have programs and funding in place that ensure minority contractors have opportunities to bid and win contracts and play a more active role in the state?s economic resurgence."
In addition to providing bonding assistance, the money will be used to establish a revolving loan fund that will provide eligible MBE contractors with the working capital necessary to sustain their businesses while awaiting payment during the construction phase of their projects.
HEDCo also administers a bonding guaranty program that, since its establishment in 2006, has guaranteed 110 bonds - totaling over $12 million ? with only one default.
