Archive for February, 2012

New York State Launches Surety Bond Assistance Program

Written by Surety Bond Expert on February 29th, 2012. Posted in New York, Surety Bond Blog

Surety Bond Assistance ProgramIn the 2012 State of the State address, New York Governor Andrew Cuomo launched a new statewide program called the New York State Surety Bond Assistance Program. The program is designed to assist small businesses and Minority and Women Owned Business Enterprises (MWBEs) in securing surety bonds and state contracts and sub-contracts for construction or transportation. For eligible businesses, credit support is provided in the form an Irrevocable Line of Credit (ILOC) for up to 30 percent of the base contract amount. An ILOC is simply a guarantee provided by the State to the surety company on behalf of the business. The maximum government contract size is $2 million. The New York State Bond Assistance Program can also help businesses with existing ILOCs by providing technical assistance. In addition, the program offers comprehensive training for these businesses to learn how to become surety bond-ready. Training and technical support for businesses seeking all types of surety bonds, such as performance bonds and bid bonds, will be facilitated by the New York State Small Business Development network and the Dormitory Authority of the State of New York. Experts estimate that this surety bond assistance program will create 2,200 jobs over the next several years and personal income will increase by an estimated $137 million and overall economic output by $328 million. Ultimately, the New York State Surety Bond Assistance Program will offer small business and MWBEs financial and credit assistance along with training and technical support. With the help of this program, these businesses will experience financial stability, more job opportunities and revenue growth.

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Georgia Used Car Dealer License Renewals

Written by Surety Bond Expert on February 24th, 2012. Posted in Georgia, Surety Bond Blog

Deadline fast approaching to obtain auto dealer bonds and renew dealer license

Georgia Used Car Dealer BondsEvery two years, on even numbered years, Georgia used car dealers must renew their dealer licenses with the state. On March 31, 2012, all Georgia used car dealer surety bonds will expire and thus must be renewed in advance. It is not legal to sell used cars for a profit in the State of Georgia without a license, even if it’s only one car. According to the Georgia Used Car Dealer Application Package (pdf), dealers are required to submit a $35,000 Surety Bond with their license renewal. You can download the bond form from the Georgia Secretary of State website. This used car dealer bond is required to guarantee that the dealer will “comply with the conditions of any written contract or written warranty by such dealer or his agent, made in connection with the sale or exchange of any motor vehicle and shall pay all loss, damages, and expenses that may be sustained by any purchasers of any used motor vehicle and their vendees or successors in title by reason of any fraudulent misrepresentation as to liens against or titles to any used motor vehicle then the bond is to be void, otherwise it is to remain of full force and effect,” as stated on the bond form. This basically means if a customer is defrauded in some way, the surety bond can be used to provide financial restitution. Fortunately, BuySurety.com specializes in low-cost Georgia Used Car Dealer Bonds and can get you the bond in 24 hours! So why wait? Apply now for a free, no obligation quote, or call us Toll Free at (800) 600-9240.  

Links

Georgia Used Car Dealer Application Package Georgia Used Car Dealer Surety Bond Form Georgia Used Car Dealer License FAQs  

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SBA Holding Webinar on Surety Bond Guarantee Program

Written by Surety Bond Expert on February 19th, 2012. Posted in Surety Bond Blog

 U.S. Small Business Administration (SBA) U.S. Small Business Administration (SBA) is holding a “Brown Bag Dialogue and Webinar” on Friday, March 2, 2012. Learn about SBA’s Surety Bond Guarantee Program and how to increase your bond limits.   Friday, March 2, 2012 Noon – 1:00 p.m. University of La Verne-Kern County Campus 1201 24th Street-Suite D-200 (Parking in M Street Lot) Bakersfield, CA Presenter: Dori Omon, SBA Surety Bond Specialist. Target audience are contractors and small businesses who want to know more about bonds including:
  • Contract Bonds (bid, performance and payment bonds)
  • Bond Agents (where to go to get help)
  • Prequalification
  • What Bond Underwriters Look For
  • Banking, Credit and Bond Costs
  • Q & A
For more information, view the SBA flyer .

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Small Businesses and the SBA’s Surety Bond Guarantee Program

Written by Surety Bond Expert on February 16th, 2012. Posted in Surety Bond Blog

SBA Surety Bond ProgramFor more than 30 years, the U.S. Small Business Administration (SBA) Surety Bond Guarantee Program has helped small businesses obtain surety bonds that they may have been unable to obtain through regular commercial channels. This program allows the SBA to work with surety companies to accept applicants who may not qualify for a surety bond due to lack of credit history, experience or financial strength. The SBA Surety Bond Guarantee Program can guarantee contract bonds for small and emerging contractors who cannot obtain surety bonds through typical commercial avenues. The various types of contract bonds covered include:
    • Bid Bond: A guarantee that a contractor will enter into a contract if awarded the bid.
 
    • Performance Bond: A guarantee that a contractor will perform the work as specified by the contract.
 
  • Payment Bond: A guarantee that a contractor will pay subcontractors, labor and material bills associated with the contract.
The SBA does not issue the bond but rather provides a guarantee in the event of contractor default. With the economic decline several years ago, one of the hardest hit industries was construction. Ironically, the SBA saw an increase not only in the surety bond guarantee volume but also in the number of participating surety companies. In February of 2009, Congress passed the American Recovery and Reinvestment Act which allowed the SBA to increase the maximum surety bond amount from $2 million to $5 million. According to Jeanne Hulit, Acting Associate Administrator for Capital Access in the SBA Office of Surety Bond Guarantees, “The Recovery Act infused new life into the surety bond program as seen by the increase in program activity in fiscal year 2010. The total number of bonds guaranteed in that year represented a 36% increase over the previous fiscal year. In fiscal year 2010, SBA guaranteed a total of 8,348 bonds representing a contract value of $4 billion.” The SBA continues to work diligently on reaching out to small businesses to create an awareness of their Surety Bond Guarantee Program. In an effort to make the program better and more easily accessible, the SBA developed an electronic bond guarantee application which allows surety companies and small businesses to upload a variety of documents which can then be electronically submitted to SBA field offices. Jeanne Hulit also said that the SBA “will be publishing a proposed rule that will adopt a streamlined application process for any bond guarantee on a contract valued up to $250,000. This new “Quick Application” process will reduce paperwork requirements for smaller contracts. As a result, small businesses and surety agents will navigate the bond application process more easily and the cycle time between application and approval will be compressed.” The SBA plans to continue reviewing its current regulations in an effort to update, streamline and simplify the surety bond regulations

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U.S. Car Dealer Franchise Network Stable

Written by Surety Bond Expert on February 14th, 2012. Posted in Surety Bond Blog

Car Dealers on the RiseAccording to a press release released today by Urban Sciences, car dealerships are on the rise for the first time in 10 years. According to data out of Detroit, the number of new car dealerships as December 31, 2011 was 17,767. This number represents a 0.6 percent increase from the 17,659 dealerships in 2010. It’s the first increase in 10 years. According to Urban Science, the company that released the dealership numbers, there is a 2 percent decline in U.S. new car dealerships in a typical year, highlighting the significance of the 2011 increase. Two of the biggest winners were Fiat, which added 135 new dealerships, and Chrysler/Dodge/Jeep, which added 50 new dealerships. As for increases in new car dealerships in individual states, the biggest winners were California (31), New Jersey (10), Ohio (9), Florida (9), Texas (8), Virginia (7), North Carolina (7), and Pennsylvania (6). Read more at www.UrbanScience.com

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