New York State Surety Bond Assistance Program

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Objective

Objective

The NYS Surety Bond Assistance Program (NYSBAP) provides technical and financial assistance to help contractors secure surety bonding. Contractors may be eligible to receive a guarantee of up to 30% to secure a surety bond line, bid bond or a performance and payment bond on New York State and New York City agency let projects.

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Overview

Overview

Guarantees of up to 30% 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. For payment and performance bonds, an Irrevocable Letter of Credit (ILOC) may be required by surety to be issued by participating banks that charge an annual fee of approximately 1% of  ILOC value. This fee is payable by the small business contractor,  in addition to the surety company’s typical bond premium charge.

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Eligibility

Eligibility

Eligible

  • 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 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 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.

Read more detailed eligibility guidelines.

How to Apply

  • To apply for financial assistance, small business contractors should review eligibility requirements and fill out a Pre-Application Assessment
  • If the assessment indicates you are eligible to submit an application, proceed with the Application and submit the required forms using the appropriate contact listed below the application links. 
  • For all New York State Surety Bond Assistance Program inquiries, please contact Ms. Huey-Min Chuang, Senior Director of Business & Economic Development, at (212) 803-3238 or BAP@esd.ny.gov
  • Small businesses interested in other state programs for launch and/or expansion, please contact the NYS Small Business Division at (800) 782-8369 or nylovessmbiz@esd.ny.gov.

National Association of Surety Bond Producers

Surety and Fidelity Association of America

Apply for MWBE certification here.

Get access to the NYS Contract Reporter here.

Technical Assistance Resources

New York State Small Business Development Center Surety Bond Program

The New York State Bonding Assistance Program has partnered with New York State Small Business Development Centers across the State to provide one-on-one technical assistance to contractors interested in doing business with the State in need of surety bonds.  Classes and workshops are also offered throughout the State. Click here to inquire with your local SBDC center on upcoming surety bonding events and training program.  

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. Click here for more information.

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. Click here for more information.

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. Click here for more information.