EDA to Partner with African American Chamber of Commerce of New Jersey to Increase Bonding Capacity for Small, Minority- And Women-Owned Businesses
TRENTON (May 11, 2018) – The New Jersey Economic Development Authority (EDA) today approved entering into a partnership with the African American Chamber of Commerce of New Jersey (AACCNJ) to establish and operate the Small Business Bonding Readiness Assistance Program, a training initiative that will better position small, minority- and women-owned businesses to compete for state or federal government contracts. The AACCNJ was selected following a competitive Request for Proposal (RFP) process, which was the result of P.L. 2016, c.84.
“The ability to get bonded and access financing is a prerequisite for contractors to successfully bid on state and federal projects. This program will help small, minority- and women-owned businesses develop this capacity and expand opportunities for more firms to participate in economic development projects,” said Tim Sullivan, EDA Chief Executive Officer. “We look forward to working with the AACCNJ to advance a program that will help to level the playing field for small businesses and support Governor Murphy’s vision for a stronger and fairer economy.”
Under the Small Business Bonding Readiness Assistance Program, eligible companies will participate in a training course designed to increase bonding knowledge and capacity, with a focus on the construction and development industries. Tuition grants will cover the cost of the training for small businesses selected to participate.
“We are pleased to be partnering with the EDA to bring this important program to New Jersey,” said John Harmon, Founder, President and CEO of the AACCNJ. “Our goal is to remove the barriers to economic opportunity that small, minority- and women-owned businesses have faced and develop a qualified and diverse pool of firms that are able to effectively compete for government contracts. This is the beginning of a transformational process to improve the competitiveness of our state.”
The program will kick off with a series of publicly available educational outreach events throughout the state to provide an overview of how surety bonding works and engage potential applicants. If a business is accepted into the program, they will participate in workshops and strategic counseling sessions spanning several key areas, including: bonding and insurance, business development, financial presentation, construction and contract law, construction management, estimating, personal credit, and business credit.
The contract awarded to the AACCNJ is based on an operating budget of $250,000, as appropriated through the Appropriations Act of Fiscal Year 2018, P.L. 2017, c.99. The contract provides for an initial term of two years.
Additional information on the program, including the dates and locations of outreach events and the application process, is forthcoming. Interested parties can visit www.njeda.gov/NJBonding for program updates.
The EDA regularly partners with financial institutions, local organizations and other state agencies to help borrowers bridge financing gaps and increase their access to capital. This includes offering low-interest loans, bond financing for manufacturers and not-for-profit organizations, and access to technical assistance and training. To learn more about EDA resources for small businesses, call EDA Customer Care at 800-858-6767 or visit www.njeda.gov/lookherefirst and follow @NJEDAWasHere on Twitter, LinkedIn and Facebook.