New York State Surety Bond Assistance Program
The NYS Surety Bond Assistance Program (NYSBAP) is set in place by the New York government to provide technical and financial assistance to contractors looking to secure a surety bond. This program was implemented to assist small and minority/women-owned business enterprises (MWBE) in securing surety bonds required for their professions.
Eligible contractors may be able to receive collateral support as an Irrevocable Letter of Credit of up to 30% of their base contract amount to secure a surety bond line, bid bond, performance bond, or a payment bond on New York State and New York City agency-led projects. The maximum contract size is limited to $2 million.
What to know about the NYSBAP
Before applying for this program, applicants must determine their eligibility. However, being eligible for this program does not automatically ensure that applicants will be granted up to 30% on the bond line or approved for a bond. Approval for a bond is based on underwriting consideration by the surety company and an Empire State Development (ESD) review. Surety underwriting will look into the applicant’s credit, financial, and personal history to determine if and at what price a quote can be issued.
Contractors who need financial assistance prior to being bonded can also enroll to receive training and technical support facilitated by the Dormitory Authority of State of New York and the Small Business Development Center network statewide. To find out more about training or financial support, visit the bonding assistance page of the ESD Web site.
Visit the NYSBAP Overview website page to view any fees and associated costs with the program.
Before applying to the surety bond assistance program, be sure you meet all eligibility requirements.
-
Be a New York State small business or a Minority- or Women-owned Business Enterprise (MWBE) with at least two years of business operations
-
Have a maximum bond line or project size of $2 million
-
Have a minimum average gross revenue of $400,000 in each of the last two fiscal or calendar years and maximum gross revenue not to exceed $5 million in the most recent calendar or fiscal year
-
Have a minimum credit score of 600
-
Must have previous experience completing similar work to the contract opportunity being pursued
You can read more details about the eligibility requirements in these guidelines.
Applicants must also fill out a Pre-Application Assessment, which asks additional questions to assist with ensuring applicant eligibility.
Once you establish your eligibility for the New York State surety bond assistance program, you can begin the application process.
-
Access the application
-
Indicate contractor type on the application (General contractor, plumbing, heating, electrical, etc.)
-
List all principal owners, provide their personal information and their percentage of ownership
-
Answer questions about the work and financial history of the company
-
Upon completion, sign and submit the application by email to BAP@esd.ny.gov
For all New York State Surety Bond Assistance Program inquiries, please contact Ms. Huey-Min Chuang, Senior Director of Business & Economic Development, at (212) 803-3238 or BAP@esd.ny.gov.
If you have been approved for the NY surety bond assistance program, you can then apply for your surety bond. You can view our New York Contractor License Bonds page for more information about contractor surety bonds in New York.
For more information about contractor surety bonds, contact a surety specialist online or by phone at 1 (800) 308-4358.