Bond Readiness Programs

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About MBDI

History and Development

 
 

The compelling need for an institute to address the lack of capital and financial literacy faced by minority contracting firms received national attention in New Orleans after Hurricane Katrina. Plans to rebuild the city called for hiring bonded minority-owned construction contractors.9 Minority contractors were available, and many had the capacity and the character to do the work, but lacked the capital10 required to finance the jobs, and accordingly, could not get bonded.11 This framed an opportunity.12

As MBDI founder, David Cayemitte began working closely with these contractors as owner of The Cayemitte Group (TCG). He learned of the widespread difficulty they also had getting property coverage near the coast. Local brokers were treating minority firms differently than their majority counterparts. This became TCG's first foray into minority issues. As Mr. Cayemitte began to understand the landscape around being a minority contractor, the seed for finding a means to address this issue was sown. By June of 2006, David was well entrenched in the surety area, and was tapped as a participant on the Surety & Fidelity Association Development and Diversity Advisory Committee. Working with the National Black Chamber of Commerce, David went to New Orleans and met with Mayor Nagin to formulate a plan to get contractors bonded, and the rebuild started. Working through this process, David learned how engrained the minority bond problem was, and vowed to find a way to create change.

In June 2009 the Dormitory Authority of the State of New York (DASNY) launched its statewide Surety Bond/Capital Access Program (DASNY Program), providing education and advisory services to minority and women-owned companies. (DASNY provides financing and construction services to public and private universities, not-for-profit healthcare facilities and other institutions serving the public good throughout the state of New York.) The development of the DASNY Program was a direct response to former Governor David A.Paterson's stated goal of inclusion of Minority and Women-owned Business Enterprise (MWBE) firms in New York State's economic development. Conceived and designed by TCG, the DASNY Program became the pilot for what is now the MBDI initiative. MBDI provides a comprehensive education and support-based program with the goal of providing a permanent solution to the bonding issue that has hindered the emerging contractor.

It is through the successful execution of the DASNY program that the idea for the Minority Business Development Institute became a reality. The Minority Business Development Institute was established to dedicate the appropriate time, energy and on-going coaching and support that an overwhelming number of MWBE businesses need as they move their firms to the next level, either getting their first bond, or moving toward becoming a prime contractor.

Note: Click on numbered footnotes for detailed information