Program to guarantee bonds for ARRA projects

BOSTON – Gov. Deval L. Patrick announced that his administration is partnering with the Massachusetts Community Development Finance Corp. to help small, minority- and women-owned businesses and contractors bid on and participate in federal stimulus-funded projects.
In legislation implementing the federal American Recovery and Reinvestment Act (ARRA) in Massachusetts filed earlier this year, Patrick included a proposal for the Surety Bond Guarantee Program. The program will help qualified contractors obtain surety bonds to secure bids and guarantee project completion.
Under the Surety Bond Guarantee Program, the Community Development Finance Corporation can guarantee bid, performance and payment bonds up to $250,000 for these businesses. The corporation’s guarantee gives surety bond underwriters an incentive to provide bonding for eligible contractors, enhancing a contractor’s ability to obtain bonding, thereby improving access to contracting opportunities, Patrick said in a statement.
“Small, minority-owned and women-owned businesses are the backbone of our economy,” Patrick said in a statement. “Our collaboration with the Community Development Finance Corporation relieves what was previously a huge challenge that kept many of these companies from competing for construction contracts. Helping these businesses helps our economy, helps our state – and in this case helps level the playing field.” &#8226