Minority Surety Bond Guaranty Program
The Minority Surety Bond Guaranty Program assists socially and economically disadvantaged minority and women owned businesses as designated by the Minority and Small Business Development Division of the Mississippi Development Authority through surety bond guarantees and technical assistance in internal management. The Minority Surety Guaranty Bond Program is available on construction contracts with federal, state and local units of government.
Program Facts
Increased minority participation in construction and building trade contracts with federal, state and local units of government is the goal of the Minority Surety Bond Guaranty Program.
To qualify for the Minority Surety Bond Guaranty Program, eligible applicants must meet the following requirements:
Surety Bond Terms
The rate and terms are set by the participating financial institution. The maximum guaranty amount is the greater of 90% of the contract bond or $250,000 for a company participating in the Program for the first time. The maximum amount can increase to $350,000 for businesses that have successfully used the Program.
The Minority Surety Bond Guaranty Program assists socially and economically disadvantaged minority and women owned businesses as designated by the Minority and Small Business Development Division of the Mississippi Development Authority through surety bond guarantees and technical assistance in internal management. The Minority Surety Guaranty Bond Program is available on construction contracts with federal, state and local units of government.
Program Facts
Increased minority participation in construction and building trade contracts with federal, state and local units of government is the goal of the Minority Surety Bond Guaranty Program.
To qualify for the Minority Surety Bond Guaranty Program, eligible applicants must meet the following requirements:
- Be in the construction or building trade business;
- Be a certified Minority Business Enterprise through the Minority Business Enterprise Division of MDA;
- Have been in business at least one year prior to application;
- Have its principal place of business located in Mississippi;
- Meet experience and financial standards appropriate to the contract;
- Agree to subcontract no more than 75% of a qualified contract;
- Show reasonable evidence of inability to secure bonding under normal market conditions.
Surety Bond Terms
The rate and terms are set by the participating financial institution. The maximum guaranty amount is the greater of 90% of the contract bond or $250,000 for a company participating in the Program for the first time. The maximum amount can increase to $350,000 for businesses that have successfully used the Program.
Mississippi Delta Developers Association • Frank Howell • PO Box 257 • Stoneville , MS 38776 • info@mdda.us • 662-686-3365
