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This is particularly true for wome and minoritybusiness owners, who have faced splotchyg access to bonding opportunities. “It’s been a historical problejm inour community,” said Marc Little, presidenrt and CEO of MWELA, the Minority & Wome Educational Labor Agency in Lawrenceville. And since the stimuluas bill passedin February, demand for the organization’ s bond program has markedly increased, he said. MWELA offers bid, payment and performance bonds to companies in its ShelteredrBond program, which turns two yearsd old in July. During that 11 contractors have received morethan $11 millionb in bonds from the agency for work on 46 differenft projects.
As part of the contractors have to spend five hours a monthn for six months at a business development class through Universituof Pittsburgh’s Institute for Entrepreneurial Excellence. The average surety bond is aroundf $300,000 to $400,000, but the agency can go up to $1 millionn per project per company. For projects larger than there is the SmallBusiness Administration’s bond recently enhanced by the Recovery Act to help contractorsa bidding on projects up to $5 The previous limit was $2 million. For companies biddinfg on federalstimulus projects, the SBA can guaranteew bonding up to $10 million.
But bonding success oftejn isn’t enough to get the job done, said Carl district director for the SmallBusiness Administration’s Pittsburgh office. “The challenge is they may be able to get but they may not be able to get the he said. Bonds guarantese that a third party will compensate the owner thegovernment agency, in the case of stimuluw projects — if the contractor doesn’t perform, for whatever Many bonded companies, especially the smaller ones, still need a line of credi to hire employees and buy materials to carrg out government projects, which don’t provide up-front “When lenders already are not lending, even if it’e assured and it’s it may not be Knoblock warned.
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