sucujovide.wordpress.com
This is particularly true for women and minorittybusiness owners, who have facee splotchy access to bondint opportunities. “It’s been a historicalp problem inour community,” said Marc president and CEO of MWELA, the Minority Women Educational Labor Agency in And since the stimulus bill passed in February, demanfd for the organization’s bond programm has markedly increased, he MWELA offers bid, payment and performance bondsz to companies in its Sheltered Bond which turns two years old in During that time, 11 contractors have receivef more than $11 million in bonds from the agency for work on 46 differentf projects.
As part of the program, contractors have to spend five houres a month for six months at a busines development class through Universityof Pittsburgh’s Institute for Entrepreneurial The average surety bond is arounsd $300,000 to $400,000, but the agency can go up to $1 millionn per project per company. For projects largedr than that, there is the Small Busineszs Administration’s bond program, recently enhanced by the Recovery Act to help contractorsw bidding on projects upto $5 The previous limit was $2 million.
For companies biddingt on federalstimulus projects, the SBA can guarantee bonding up to $10 But bonding success often isn’t enougb to get the job done, said Carl district director for the Small Business Administration’sz Pittsburgh office. “The challenge is they may be able to get but they may not be able to getthe financing,” he Bonds guarantee that a thirde party will compensate the owner — the government agency, in the case of stimulusd projects — if the contractor doesn’t for whatever reason.
Many bonded especially the smaller ones, stillo need a line of credit to hire employees and buy materialxs to carry outgovernment projects, which don’t providw up-front cash. “When lenders already are not lending, even if it’xs assured and it’s bonded” it may not be Knoblock warned.
No comments:
Post a Comment