New York State Surety Bond Assistance Program

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The State Small Business Credit Initiative (SSBCI) is expanding the New York State Surety Bond Assistance Program (NYSBAP) with $22 million in funding. The program provides technical and financial assistance to help contractors secure surety bonding. Contractors may be eligible to receive a guarantee of up to 30%, or $600,000, whichever is less, to secure a surety bond line, bid bond or a performance and payment bond on publicly funded or government-led projects. 

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Guarantees of up to 30%, or $600,000, whichever is less, on a bond line or individual contract bid bonds and payment/performance bonds are available from Empire State Development. Being eligible for this program does not automatically ensure bonding. Approval is based on both successful underwriting by a surety company and ESD's review. Small businesses can also enroll to receive free training and technical support on becoming bond-ready (see contact information below). 

Fees and Associated Costs 

Guarantees for bond lines and bid bonds will be issued by Empire State Development with zero fees or costs. However, small businesses will be responsible for surety company’s typical bond premium charge. 

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  • Applicant must be a New York State small business or MWBE with at least two years of business operations. 
  • Maximum bond line or project size generally is $2 million. 
  • Minimum average gross revenue of $400,000 in the each of the last two fiscal or calendar years and maximum gross revenue generally not to exceed $5 million in the most recent calendar or fiscal year. 
  • Minimum credit score of 600. 
  • Previous experience completing similar work to the contract opportunity being pursued. 

Additional eligibility guidelines:​ 

  • No unpaid judgments, warrants or liens. (Satisfied judgments are acceptable.) 
  • No unpaid, pending or open tax liens. 
  • No arrears in child support. 
  • No recent, pending or open bankruptcy filings. 
  • Contractor should not have poor personal and/or corporate credit history. Minimum acceptable credit is greater than 600 for all persons required to sign a General Indemnity Agreement (owner, spouse, investors and principals owning more than 5% interest and their spouses). Credit reports must be furnished upon application for all parties. 
  • Contractor must be in business for a minimum of two years. 
  • Contractor should not have any surety losses on their record. 
  • Minimum average gross revenue of $400,000 in either of the last two fiscal or calendar years and maximum gross revenue not to exceed generally $5 million in the most recent calendar or fiscal year. 
  • The contractor/firm to provide two years of financial statements as follows: 
    • If the project/contract value is less than $500,000, CPA financial statements are not required, but CPA prepared tax returns and quality, computer generated financial statements are required. Cash basis financial statements are not acceptable. Underwriters prefer an accrual basis or percentage-of-completion basis. Financial statements required, at a minimum, are the Profit and Loss statement (Income Statement) and the Balance Sheet. 
    • If the project value is more than $500,000 but less than $1,000,000, the contractor/firm is requested to produce CPA financial statements on either a reviewed or compilation basis. Again, no cash basis statements. The statements should be prepared on an accrual or percentage-of-completion basis. 
    • If the project value is more than $1,000,000, the contractor/firm is required to produce CPA financial statements on a reviewed basis, with footnotes and schedules on a percentage of completion basis. In addition, if available, a Work in Progress schedule that ties into the CPA statement is helpful. 
  • A detailed Accounts Receivable and Accounts Payable Aging Schedules to be submitted. 
  •  The contractor/firm provide a current Work In Progress Schedule with all projects reflected, both bonded and non-bonded. 
  • The contractor/firm provide a bank letter evidencing at least 10% of the value of the contract in working capital, either by cash on hand, credit line or other liquid assets. 
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How to Apply

Applications will be forthcoming. 

For all New York State Surety Bond Assistance Program inquiries, please contact Ms. Huey-Min Chuang, AVP of Small Business and Technology Development, at (212) 803-3238 or email [email protected]

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Technical Assistance Resources

MTA's Tier 1 Small Business Mentoring Program (SBMP) 

The MTA seeks to increase, facilitate and encourage the participation of small businesses, including Minority and Women-Owned Business Enterprises (M/W/BEs) by providing a supportive framework for eligible firms to develop and grow within the construction industry and to establish stable, long-term business relationships with the MTA. 

MTA's Small Business Mentoring Program — Tier 2 (SBMP-Tier 2) 

Upon successful completion of a four-year MTA mentoring relationship, a company is eligible to complete a four-year advanced program that provides eligibility to bid on projects valued up to $3 million. The contracts will be awarded directly without a construction manager's participation in order to prepare the firm to transition to active and independent contract work with the MTA. Firms must obtain a surety bond to participate.

DASNY Surety Bond Program 

The goal of the DASNY Surety Bond Program is to help NYS-certified MWBE firms qualify to secure bonding/capital access. The ultimate objective is to build your firm’s capacity so that you can work as a Prime Contractor on DASNY projects. 

New York State Division of Service-Disabled Veterans' Business Development 

The division promotes economic development opportunities for certified Service-Disabled Veteran-Owned Businesses.  It supports disabled veteran entrepreneurs with resources to equip them to create and expand small businesses, thereby enabling them to realize the American dream that they fought to protect.