DC Small Business Bonding Program Establishment Act of 2018 to Include Permanent Bonding Education->
Wednesday, September 19, 2018
DC Small Business Bonding Program Establishment Act of 2018 to Include Permanent Bonding Education Program
The Surety & Fidelity Association of America (SFAA) received a heads up from the District of Columbia City Council yesterday that the Small Business Bonding Program Establishment Act of 2018 will be introduced to create a permanent bonding education program, which is patterned after SFAA’s Model Contractor Development Program (MCDP®). SFAA was contacted because of our bonding education programs and other assistance with legislation. SFAA supports the bill and looks forward to assisting the Small and Local Business Development (Department) in the implementation of this new program. A copy of the bill is attached.
The Department would be charged to identify and recruit contractors that are eligible for the program, and to coordinate with surety associations to identify professionals from the surety, construction, legal, and financial sectors to organize bonding initiative workshops and to serve as a bond-readiness team. The Department would have to work with the surety industry to coordinate on the intake and assessment for bonding and assembling company profiles and bonding packages, as well as developing key performance indicators, objectives, and workload measures to monitor the Program’s progress and success. The Department plans to develop and maintain a network for the eligible participants and the surety, banking, and financial industries through sponsored meetings and counseling services.
SFAA introduced the MCDP® in 2000. Over the last 18 years, SFAA implemented the program in DC Small Business Bonding Program Establishment Act of 2018 to Include Permanent Bonding Education Program numerous locations all over the US. Similarly, SFAA has partnered with the US Department of Transportation on a joint Bonding Education Program (BEP). To date, thousands of contractors have benefited as the level of bonding offered and underwritten through these two programs exceeds $1 billion. Since most of the contracts bonded in these two programs are for small amounts, the overall totals indicate that the MCDP® and BEP have helped numerous contractors, which the District’s new program will further assist in helping small, emerging and minority contractors.
SFAA implemented its MCDP® as a statewide program in New York in 2008, and now it has been institutionalized within the New York state government. Surety companies have been offered or underwritten bonding for contractors participating in the New York program for over $100 million, including $18 million to female contractor participants due to SFAA’s additional efforts with the Women Builders Council in New York City.
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