N.Y. UDA Law § 16-F — New York Code / Act UDA / Section 16-F
Bonding guarantee assistance program
Status: in_force

§ 16-f. Bonding guarantee assistance program. (1) Program created.\nThere is hereby created a state bonding guarantee assistance program to\nenable small businesses, and minority-owned and women-owned business\nenterprises, certified as a minority-owned or women-owned business\nenterprise pursuant to article fifteen-A of the executive law, to meet\npayment and/or performance bonding requirements by providing additional\nfinancial backing needed to induce a surety company to issue a bond for\nconstruction projects, including but not limited to, government\nsponsored, transportation related construction projects. For purposes of\nthis section, the term small business shall have the same meaning as\ndefined in section one hundred thirty-one of the economic development\nlaw. Such program shall give preference to minority-owned and\nwomen-owned business enterprises and shall:\n  (a) Make available funds to surety companies providing bonds to small\nbusinesses and minority- owned or women-owned business enterprises in an\namount equal to a percentage not to exceed fifty percent of the face\nvalue of bonds issued by the surety.\n  (b) Provide technical assistance in completing bonding applications\nfor small businesses and minority-owned or women-owned business\nenterprises seeking to become eligible for bonding in preparation for\nbidding on construction projects, including transportation related\nprojects. The corporation shall provide and may refer such businesses to\nthe department of economic development for technical assistance as such\nbusinesses may need, including but not limited to:\n  (i) a review of the applicants' market and business competitive\nstrategy;\n  (ii) consultation and review of the development and planned\nimplementation of a working capital budget;\n  (iii) assistance with applications for the receipt of funding from\nother financial sources and providing referrals to other appropriate\npublic and private sources of financing; and\n  (iv) assistance from the regional offices of the department of\neconomic development, pursuant to article eleven of the economic\ndevelopment law, and the entrepreneurial assistance program, pursuant to\narticle nine of such law, and any other such program receiving state\nfunds from this act or the department of economic development or any\nother state agency that is intended to provide technical assistance to\nsmall businesses and minority-owned and women-owned small business\nenterprises.\n  (2) Criteria and regulations. (a) The corporation shall by rule\nestablish criteria for such program, such criteria to include detailed\nprovisions for eligibility.\n  (b) The corporation shall promulgate rules and regulations to\neffectuate the purposes of this section which shall be approved by the\ndirector of the budget.\n  (3) Funds. Funds for this program shall consist of such amounts as may\nbe appropriated, any repayment of funds made available under this\nprogram, and any interest earned by the corporation from the investment\nof moneys from this program.\n  (4) Nonapplication of certain provisions. The provisions of section\nten and subdivision two of section sixteen of this act shall not apply\nto assistance provided under this program.\n