Empire State Development New York State Surety Bond Assistance - - PowerPoint PPT Presentation

Empire State Development

New York State Surety Bond Assistance Program

and Other State Resources for Small Businesses

Empire State Development

Empire State Development (ESD) is New York State's lead economic development agency. The mission of Empire State Development (ESD) is to promote business investment and growth that leads to job creation and prosperous communities across New York State. Under the leadership of Governor Andrew Cuomo and ESD President, CEO & Commissioner Kenneth Adams, our economic development professionals stand ready to help you, no matter what sector of the economy you compete in and whether you’re a small business, a MWBE-certified firm or an international company. http://esd.ny.gov

Division of Minority and Women

Business Development

“New York’s strength lies in the diversity, innovation and entrepreneurship of all its residents. By breaking down barriers to growth for MWBEs, we are putting that strength to work for all New Yorkers, building a more diverse and competitive business climate.” Andrew M. Cuomo, Governor State of New York

• The mission of the Division of Minority and Women-Owned Business Development

(DMWBD) is to promote equality of economic opportunities for MWBEs and to eliminate barriers to their participation in state contracts. We supplement New York State’s economic leadership with information and resources that increase access to information and opportunities for minority and women-owned businesses throughout the State. Our key objectives:

• To review applications by businesses seeking certification as an MWBE and to maintain a

directory of certified MWBEs.

• To encourage and assist state agencies that are engaged in contracting activities to award a

fair share of state contracts to MWBEs.

• To promote the business development of MWBEs through education and outreach to agencies

and MWBEs.

Minority & Women Owned Business Enterprise Business Development 2013

CONNECT FIRMS TO CONTRACTING OPPORTUNITIES

• Matchmaking Events
• Customized Bidders Lists

BUILD THE BUSINESS CAPACITY OF CERTIFIED FIRMS

• Training & Technical Assistance https://www.esd.ny.gov/MWBE
• Contact the MWBE Ombudsman Business Advisor : Yvette R. Hall at yhall@esd.ny.gov

CONNECTING FIRMS TO RESOURCES

• Access to Capital
• Employees

HELP NAVIGATING STATE GOVERNMENT

• Permits/ Licensing
• Resolving Contract Issues

Selling to New York State

New York State Contract Reporter

The NYS Contract Reporter is the online source for NYS procurement opportunities. State agencies, authorities, and public benefit corporations, including SUNY/CUNY schools, must advertise procurements in the Contract Reporter. In addition, many counties and municipalities also advertise their procurements in the Contract Reporter.

NYS Contract Reporter: www.nyscr.org Doing Business with New York State

This comprehensive procurement guide is available on the Business First website. http://www.nyfirst.ny.gov/ResourceCenter/Data/DoingBusinesswithNYS_July2011.pdf

For additional resources, please visit: http://esd.ny.gov/BusinessPrograms/ProcurementAssistance.html

Technical Assistance Programs

Entrepreneurial Assistance Program (EAP)

Provides instruction, training, technical assistance and support services to individuals who recently started their own business or are interested in starting their own business. The program’s 24 EAP centers are strategically located throughout New York State.

Ombudsman/Direct Business Assistance

Provides business counseling services and helps entrepreneurs navigate NYS government and ESD small business programs. Division staff provide assistance around business planning, permitting, access to financing, and other services, either directly or through referrals to other providers.

Small Business Development Center Network (SUNY)

Through a network of 24 regional centers, the New York State Small Business Development Center delivers high quality business counseling and training to New Yorkers who want to start a business

• r improve the performance of an existing business.

Contact Information

For information on other ESD small business programs visit http://www.esd.ny.gov/smallbusiness.html Contact : nylovessmbiz@esd.ny.gov 1-800-STATE-NY (1-800-782-8369) or 518-292-5220

MWBE Certification and the New York State Contracting System

http://esd.ny.gov/MWBE.html https://www.ny.newnycontracts.com

Participating in New York State Contracts

As a Certified Minority and/or Woman-Owned Business, you are poised to take advantage of terrific opportunities in NYS Contracting. Although Certification is not a requirement for doing business with NYS, Governor Andrew Cuomo has set a goal of 20% participation for certified MWBE firms to take part in NYS Contracts. There are 7,600 certified firms in NYS at the present time. A common complaint among Prime Contractors is having difficulty finding qualified MWBE firms to bring in as subcontractors. THE TIME IS NOW! To become certified and participate in the $20 Billion in NYS Contracts that are awarded annually to companies doing business with NYS! DON’T DELAY! Help is available through your local SBDCs, EAP Centers, and through other resources at the State and in your area. WE ARE HERE TO HELP!!!

Why Get Certified?

• Your certified firm is listed in the public Directory of Certified

Minority and Women-Owned Business Enterprises

• Your firm attracts new business
• You can be part of the 20% goal set by Governor Andrew

Cuomo for MWBE participation in State Contracts.

• Access to funding you might not otherwise qualify for
• Your firm is sought by agencies seeking contractors and

subcontractors

• All State Agencies
• Public Authorities
• Federal Agencies
• Corporations
• Free workshops, seminars, and networking events
• Additional contracting opportunities through Discretionary

Spending

• Visit the MWBE Resource Center at www.nyfirst.ny.gov

Qualifications for New York State MWBE Certification

All applicants:

• All firms seeking MBE, WBE or MWBE certification must be owned, operated and controlled by minority members

and/or women.

• The ownership must be real, substantial and continuing, and the minority members and/or women must exercise

the authority to independently control the day-to-day business decisions.

• Each minority or woman who has an ownership interest in the firm must have a net worth which does not exceed

3.5 million dollars. This calculation should not include the ownership interest in the applicant firm, the primary residence of the owner(s), and $500 thousand of present cash value of any qualified retirement savings plan, or individual retirement account held by the individual less any penalties for early withdrawal.

• The firm cannot exceed 300 employees.
• The firm must operate independently of other firms.
• Generally, the business must be in operation for at least one year.

All out-of-state applicants:

• Out of state applicants should be certified as a MWBE in their home state, if a similar process exists, before

applying for MWBE certification in New York State.

• All applicants m ust

st have “Authority to do Business in New York State” from the New York Department of State prior to submitting an application for MWBE certification.

To qualify for New York State certification as a minority and/or women-

• wned business enterprise (MWBE), an applicant must successfully

demonstrate the following:

Qualifications for New York State MWBE Certification

Definition of a Women-Owned Business Enterprise (WBE) Under Article 15-A of the Executive Law, a WBE is a business enterprise in which at least fifty-one percent (51%) is owned, operated and controlled by citizens or permanent resident aliens who are women. Definition of a Minority-Owned Business Enterprise (MBE) Under Article 15-A of the Executive Law, an MBE is a business enterprise in which at least fifty-one percent (51%) is owned, operated and controlled by citizens or permanent resident aliens who are meeting the ethnic definitions listed in the chart below:

To qualify for New York State certification as a minority and/or women-

• wned business enterprise (MWBE), an applicant must successfully

demonstrate the following:

Group Definition Black Persons having origins from any of the Black African racial groups. Hispanic Persons of Mexican, Puerto Rican, Dominican, Cuban, Central or South American descent of Either Indian or Hispanic origin, regardless of race. Asian-Pacific Persons having origins from the Far East, Southeast Asia or the Pacific Islands. Asian-Indian Subcontinent Persons having origins from the Indian subcontinent. Native American Persons having origins in any of the original peoples of North America.

USING THE NEW YORK STATE CONTRACTING SYSTEM Reviewing MWBE Applications

https://www.ny.newnycontracts.com

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Financial Assistance Programs

Surety Bond Assistance Program (New)

A newly activated program that provides financial assistance and credit assistance, as well as training and technical support to help small business or Minority –and-Women-Owned Business Enterprises (MWBEs) secure surety bonds for New York State government contracts.

Small Business Revolving Loan Fund (New)

A $50 million fund targeted to minorities, women and other New Yorkers who have difficulty accessing regular credit markets. The state provides $25 million in state funds, which is matched by an additional $25 million from the participating lenders.

NYS Surety Bond Assistance Program

Pre Credit Training Credit Support (Guarantee from NYS)

NYS Surety Bond Assistance Program

NYSBAP

Surety Underwriter Surety Broker/ Agent NYS/ NYC Agencies ESD Training Provider Contractor

Credit Support

• Guarantees are offered on either a

bond line or on an individual bond

• Bond-ready applicants can apply

directly for credit support

• NYSBAP Application, Guidelines and

Pre-Assessment Checklist on our web site

• Independent credit review
• Bond line guarantee and ILOC - up to

30% of Bond Amount or $600,000, whichever is less

Credit Support (Guarantee/ ILOC)

Credit Support Eligibility

• NYS defined small business.
• Currently bidding on State/ City agency’s work. Also NYNJPA and NYCSCA

accepted.

• Credit score over 600; no judgments, tax liens or prior surety claims.
• Be in business for at least 2 years, with revenues between $400k-$5

million annually.

• Contract value be under $2 million; no more than two outstanding

contracts under NYSBAP at any given time.

• Provide Work in Progress Schedule, Aging Report of payables and

receivables.

• Bank letter showing available working capital of at least 10% of contract

value.

• 2 years of financial statements required –

– If contract value is < $500K, no CPA financials; if > $500 be less than $1 million, reviewed CPA financials; if > $1 million; reviewed with footnotes and schedules.

Credit Support Process

REVIEW ELIGIBILITY CHECKLIST WORK WITH INSURANCE BROKER (WE CAN HELP) SUBMIT APPLICATION TO ESD SURETY DETERMINES IT WILL PROVIDE BONDING WITH ESD GUARANTEE ESD APPROVES AND ISSUES GUARANTEE TO SURETY SURETY ISSUES BID BONDS AS CONTRACTOR BIDS ON CONTRACTS AS CONTRACTS ARE WON, ESD ISSUES ILOCS TO SURETY ON BEHALF OF CONTRACTOR UPON SUCCESSFUL COMPLETION OF CONTRACT, BOND IS RELEASED AND ILOC IS RETURNED

Credit Support – Contacts and Information

Visit: http://esd.ny.gov/BusinessPrograms/BondingAssista nce.html Questions Email: BAP@esd.ny.gov or call

• Ms. Huey-Min Chuang at 212-803-3238

Small Business Resource Center

http://www.nyfirst.ny.gov

Alternative Lending Directory

http://www.esd.ny.gov/SmallBusiness/AlternativeFunding.html

New York State Directory of Small Business Alternative Lending Programs