Contracting businesses that are at least 51% owned and operated by African Americans, Asian Americans, Hispanic Americans, or Native Americans are eligible for classification as a Minority Business Enterprise or “MBE.” MBEs are eligible for a number of contracting assistance programs and other unique business programs. In addition to qualifying for Small Business Administration (SBA) bonding, a Minority Business Enterprise in Maryland may qualify for an additional Sureties program that offers even more financial protection.
The Steps Involved in Obtaining Bonding Through the SBA
Both the SBA and MBE application process can be particularly difficult for newer or inexperienced contracting businesses, particularly in periods where there are a high volume of applicants. The application and approval process related to this program is much easier for contractors that team up with an experienced insurance agency; the agency will handle all the heavy lifting and make sure no details are left out.
The Value of SBA Bonding for MBEs
SBA program Sureties offer a guaranteed 80% return on any losses or expenses, while the MBE Sureties program offers a 90% rate. The SBA program gives contractors the ability to expand their business through bonded jobs, something that traditional banking loans and credit lines may not. SBA/MBE Sureties give a Minority Business Enterprise in Maryland the opportunity to carry bonding on projects as large as $10 million dollars, as well as offering quick application processes for contracts that are valued at $250,000 or less.