Purpose

Purpose. The Minority Surety Bond Guaranty Program strives to increase minority participation in construction and building trades contracts with federal, state, and local units of government, and their subsidiaries. Often minority firms are unable to compete for this business because they cannot obtain the bid, performance, and payment bonds required for government contracts. The Minority Surety Bond Guaranty Program assists these firms through surety bond guaranties and technical assistance to internal management. The goal of the Minority Surety Bond Guaranty Program is to help minority and women contractors establish a bond line with a surety company with a partial guarantee from the state. This will provide to the contractors an opportunity to form a relationship with a surety company thereby enabling them to obtain bond lines without a state guarantee. With successful completion of contracts guaranteed under the program, coupled with management and technical assistance directed by the program administrator and others, it is projected that minority contractors will grow in experience, management skills and the financial stability sufficient to obtain surety bonding on their own.*