Section 1838. Bonding guarantee assistance program

1. There is hereby
  created a state bonding guarantee assistance  program  to  enable  small
  businesses,  and  minority-owned  and  women-owned business enterprises,
  certified  as  a  minority-owned  or  women-owned  business   enterprise
  pursuant  to  article  fifteen-A  of  the executive law, to meet payment
  and/or  performance  bonding  requirements   by   providing   additional
  financial  backing needed to induce a surety company to issue a bond for
  construction  projects,  including  but  not  limited   to,   government
  sponsored, transportation related construction projects. For purposes of
  this  section,  the  term  small business shall have the same meaning as
  defined in section one hundred thirty-one of  the  economic  development
  law.   Such   program   shall  give  preference  to  minority-owned  and
  women-owned business enterprises and shall:
    (a) make available funds to surety companies providing bonds to  small
  businesses  and minority-owned or women-owned business enterprises in an
  amount equal to a percentage not to exceed fifty  percent  of  the  face
  value of bonds issued by the surety.
    (b)  provide  technical  assistance in completing bonding applications
  for  small  businesses  and  minority-owned  or   women-owned   business
  enterprises  seeking  to  become eligible for bonding in preparation for
  bidding  on  construction  projects,  including  transportation  related
  projects. The authority shall refer such businesses to the department of
  economic development and the urban development corporation for technical
  assistance as such businesses may need, including but not limited to:
    (i)  a  review  of  the  applicants'  market  and business competitive
  strategy;
    (ii)  consultation  and  review  of  the   development   and   planned
  implementation of a working capital budget;
    (iii)  assistance  with  applications  for the receipt of funding from
  other financial sources and providing  referrals  to  other  appropriate
  public and private sources of financing; and
    (iv)  assistance  from  the  regional  offices  of  the  department of
  economic  development,  pursuant  to  article  eleven  of  the  economic
  development law, and the entrepreneurial assistance program, pursuant to
  article  nine  of  such  law, and any other such program receiving state
  funds  from  the  department  of  economic  development  or  the   urban
  development  corporation  or  any other state agency that is intended to
  provide technical assistance to small businesses and minority-owned  and
  women-owned small business enterprises.
    2. Criteria and regulations. (a) The authority shall by rule establish
  criteria  for such program, such criteria to include detailed provisions
  for eligibility.
    (b) The authority shall promulgate rules and regulations to effectuate
  the purposes of this section which shall be approved by the director  of
  the budget.