Overview
When a qualified Small and Emerging Business requires quality
bid, performance and payment bonds from surety companies at
reasonable rates, the Bonding Assistance Program can help reach the
bonding capacity required for specific projects.
Note: The Bonding Assistance Program is available for qualified
companies who have never been bonded, and for companies that have
been bonded but are increasing bonding capacity.
Benefits
The Bonding Assistance Program provides assistance with new bond
guarantees to small businesses in Louisiana, creating more
possibilities for investment in the state. By providing companies
the ability to bid on private and public jobs, entrepreneurs are
finding new opportunities to compete for projects that can lead to
financial security and potential growth.
Eligibility
Bond underwriting is accomplished by the surety company, and the
surety company has final bonding approval authority. Key
underwriting criteria include:
- Previous scope of work completed relative to the type being
considered
- Cash on hand relative to the cash requirements of the project
being bid
- Credit history
Once the surety has given final bonding approval, the Bonding
Assistance Program provides collateral in the form of an
Irrevocable Letter of Credit to the surety company of up to 25% of
the base contract amount, or $200,000, whichever is less, on a
project specific basis.
Applicant must be a certified Small and Emerging Business
Development client.
Applicants are encourged to complete LED's Louisiana Contractors
Accreditation Institute. To learn more, click here.
For comprehensive rules and details on eligibility, please
review Related Content below and contact the
appropriate administrator.
How to Apply
Access to bonding assistance is gained through certification in
the Small and Emerging Business Development program.
Click
here to apply for the Small and Emerging Business Development
program.
Related Content
Administration
This program is administered by the Louisiana Economic
Development.
For Bonding Assistance Program information, contact the program
administrator:
Torri Buckles
225.342.5663
tbuckles@la.gov
