May 31, 2009: Small businesses that want to bid on construction projects from the California Department of Transportation (Caltrans) now have help obtaining the required bond guarantees, thanks to a new partnership between Caltrans and the US Small Business Administration (SBA). The joint Bonding Assistance Initiative will assist qualified small businesses in obtaining bond guarantees -- a requirement that has been difficult for small businesses to meet in the past.
The difficulty in obtaining bond guarantees has prevented small businesses from bidding on Caltrans construction work, a problem that the new partnership seeks to fix. With so many new construction projects flowing out of the Recovery Act, the state of California hopes to encourage employers of all sizes to submit bids for work.
The partnership increases the number of companies in California that issue SBA surety bond guarantees so small businesses will have easier access to bond guarantees and applications. According to California’s Recovery Act website, the state has received nearly $2.6 billion in Recovery Act funding for highway and local streets, and Caltrans is advertising projects for contractors, including small businesses.