NASBP Responds to Small Business Needs for Bonding Information 

Over the past several years, NASBP members have devoted a great deal of their time and energy participating in bonding education programs throughout the country such as the U.S. Department of Transportation’s (DOT) Bonding Education Program (BEP). That Program was launched in 2010 with the express purpose of providing education and information to small and emerging business owners on bonding, so they may someday qualify for surety credit for transportation-related projects. NASBP members recognize the need to work cooperatively with partners like the U.S. DOT and other state and federal agencies or non-profit organizations to assist them with their bonding programs. Listen to the free recording of the NASBP Virtual Seminar that describes “How NASBP Partners with DOT to Promote Bonding,” by clicking here. Also, see the current schedule for the DOT BEP Workshops at nasbp.org by clicking here.

Over the past few years, word has spread throughout the country about NASBP’s commitment, and, as a result, various organizations have contacted NASBP for assistance. For example, the Mid America Government Industry Coalition (MAGIC) contacted NASBP concerning a 3-day workshop it was hosting in Oklahoma City, Oklahoma to address the new mentor-protégé agreements in federal contracting resulting from the passage of the National Defense Authorization Act (NDAA) of 2012. MAGIC invited NASBP to address bonding issues for small contractors. Michael Williams, President/Chief Executive Officer of CCI Surety, Inc., whose company is one of the largest writers in the SBA’s Bond Guarantee Program and who also has an extensive professional background in providing bonds to Oklahoma Native American tribes, agreed to represent NASBP at the event.

NASBP Member Michael Walter of BB&T – Atlantic Risk Management spoke at a Baltimore County Small Business Resource Center (SRBC) Workshop		Former employees of RG Steel Company learned about starting a business at SRBC Workshop

In addition, NASBP recently presented at a workshop (attendees pictured here) held at the Baltimore County Small Business Resource Center (SBRC) to former employees of the RG Steel Company of Baltimore, MD, which recently declared bankruptcy. The workshop was designed to help participants learn what is needed to start a new business. NASBP member, Michael Walter (pictured presenting to attendees) Vice President of BB&T – Atlantic Risk Management, spoke to attendees with varying construction and non-construction trade backgrounds.

Later on this spring, NASBP will present at the Local Contractor Development Program (LCDP), which is being administered by the City of Baltimore Small Business Resource Center (SBRC). Presenters will include the team from Construction Bonds, Inc.–A Division of Murray Securus, including Josh Etemadi, Chair of the NASBP Small and Emerging Business Committee. The LCDP will consist of construction-related topics that help MBE/WBE contractors to develop and build capacity and be in a better position to compete and to grow their companies.

While the surety industry will undoubtedly continue to hear from its naysayers, which include some elected officials who believe bonding is unfair and imposes an unnecesary roadblock for small and emerging contractors to participate on state/federal construction projects, the surety industry is combating those assertions by participating in programs such as those described above. Moreover, bonding education programs work. According to the U.S. DOT, since their Bonding Education Program began in 2010, there have been 509 participants who have completed the Program resulting in nearly $140 million in bonds issued on transportation projects. Hopefully one day, those naysayers will change their sentiment and recognize that the industry is responding to the needs of small and emerging contractors and is making every attempt possible to position them to secure surety credit.