Bond Readiness Programs

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About MBDI

Compelling and Documented Need for Bonding Assistance

Numerous disparity studies show that an unduly small number of government construction contracts are awarded to minority-owned firms. This inequity warrants the establishment of a comprehensive initiative to address this disparity. At present, most minority-owned businesses find it difficult or impossible to compete for public opportunities because they are not able to secure the necessary bid performance and payment bonds. The 2010 New York economic disparity study3 found that "MWBEs are present in substantially lower numbers and are substantially more likely to be denied access to credit than would have been the case if the market operated in a race and gender neutral manner."4

Additional research shows that in 2009, more than 95% of 337 cities examined by the Associated General Contractors of America experienced job declines for construction workers.5 This fact has a direct impact on many communities struggling with high unemployment rates. Disproportionately, minority men work in the construction industry and the recent declines in the workforce have had a devastating impact on many communities. For instance, in New York City, where the decline in employment since the recession has been much steeper for blacks than for white or Hispanic residents, blacks were overrepresented in fields that suffered the most in the downturn, including construction.6 More than half of all blacks in New York City old enough to work have no job at all in 2012.7 By incubating strong, well managed MWBE construction firms, MBDI's initiatives will help prepare these businesses to enter the lucrative public contracting arena, thus empowering them to bring jobs back to communities and reignite the workforce for many who are unemployed and disenfranchised.

MBDI trains and helps position MWBE construction contractors to qualify for bonds - and seeks ultimately to bridge the gap in procurement disparity. MBDI's services do more than just provide access to capital; they provide sustainable systemic change in minority-owned businesses. MBDI trains CEOs to run their businesses in a manner that will allow them to successfully bid for and manage government construction contracts. At a time when the median wealth of white households has risen to 20 times that of black households and 18 times that of Hispanic households, an unprecedented gap,8 MBDI's services are critical to help stem a deeply-rooted social crisis.

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