New York City creates $10 million fund to help women- and minority-owned firms win construction contracts

The money is earmarked for up to $500,000 surety bonds per contract.

July 13, 2017 |

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New York City recently created a $10 million fund to assist women- and minority-owned businesses win construction contracts.

The money can pay up to $500,000 of surety bonds per contract. City contractors are required to post the bonds to guarantee they will satisfactorily perform work and pay their bills.

Smaller firms without a track record of completed projects, however, have a difficult time securing bonds from the private market. The fund will also help other contractors who are required to hire a certain percentage of these firms but can't find enough of them to meet their mandated quotas.

The city aims to issue $16 billion worth of contracts to minority- and women-owned businesses by 2025.

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