LT. GOVERNOR DAVID A. PATERSON TO UNVEIL NEW INITIATIVE TO HELP MINORITY AND WOMEN-OWNED BUSINESSES PARTICIPATE IN STATE DEVELOPMENT PROJECTS

(9/5/07 New York, NY) Lieutenant Governor David A. Paterson today announced a new initiative that will help minority and women-owned businesses access bonding and training to expand their participation in building projects throughout the state.

Paterson made the announcement during the Lower Manhattan Construction Command Center's first conference for minority and women-owned businesses, where he was joined by Robert Harvey, Acting Executive Director of the LMCCC. The free conference, held at the Borough of Manhattan Community College, brought together prime contractors, construction management firms and City and State agency representatives involved in the rebuilding effort in Lower Manhattan.

During the event, Paterson announced a new State initiative designed to provide training and create greater access for minority and women-owned businesses to contracts.

Paterson said, "Our goal is to provide these businesses with the tools they need to access bonding. There are a number of construction projects both planned and underway that will strengthen Lower Manhattan as the financial capital of the globe and we want minority and women-owned businesses to be heavily involved at every turn."

Harvey said, "This conference is a great opportunity for minority and women-owned businesses to network with leaders in the construction field and gain valuable insight into opportunities in the rebuilding of the WTC site and 60 other construction projects the LMCCC is coordinating in Lower Manhattan. We want to ensure that minority and women-owned firms play a role in the boom taking place below Canal Street."

The Memorandum of Understanding between the Lt. Governor and leaders of the Bonding and Surety industry will establish a pilot bonding program for 30 New York Certified Minority and Women -Owned Businesses throughout the State.

Each firm will receive training from industry executives. In addition, the Jamaica Business Resource Center has committed to provide in-depth technical assistance in the areas of management and operational systems, finance and accounting systems, business plan development, profit and loss analysis, loan packaging, and packaging of bonding applications. Pilot firms will also be referred to a group of attorneys and CPA firms to address legal and accounting technical issues.

At the end of the program, the surety industry executives will recommend appropriate bonding levels and work with surety companies to identify the most appropriate fit for the placement of each pilot firm. The SBA Bond Guarantee program will be used for all bonds up to $2 million.

The State of New York will work with the Surety & Fidelity Association of America member companies and the National Association of Surety Bond Producers on the issuance of all bonds over $2 million. In addition to the 30 firms that will receive special technical assistance through the pilot program, the New York State Division of Minority and Women Owned Business Development will actively recruit additional firms to access bonding assistance through the SBA Bond Guarantee program.

Lynn M. Schubert, President, Surety & Fidelity Association of America (SFAA) said, "SFAA has long been committed to assisting small and emerging contractors become bondable. We look forward to great success with our Model Contractor Development Program (MCDP) in New York."

The MCDP workshops are designed to improve contractors' operations to make them bondable, followed by one on one interaction with agents, sureties and other professionals who work with the contractors to assemble a complete bond application and address any possible deficiencies. During today's one-day conference, a session with Surety Industry leaders on bonding requirements and surety underwriting criteria took place.

Attendees were able to gain information on resources available under the LMCCC/MWBE program, which is funded by the U.S. Department of Housing and Urban Development. Senior executives from banking and financial service industries also provided information.

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