The American Recovery and Reinvestment Act (ARRA) included $20
million in funding to enable the U.S. Department of Transportation (USDOT) to
provide bonding assistance to disadvantaged business enterprises.
The USDOT has now established a DBE Bonding Assistance Program that will
provide reimbursements to small and disadvantaged businesses for the bonding
premiums and fees they incur when they compete for or perform work on projects
funded by ARRA. Assistance is available to prime contractors or
subcontractors working at any tier to reimburse premiums for performance,
payment, or bid bonds; reimbursements can also be obtained for fees charged by
the Small Business Administration.
This funding must be used for bonds issued before September 8, 2010 – so it
is imperative that disadvantaged businesses begin to submit their applications
as soon as possible.
To be eligible to participate in this program, a business must be a
certified Disadvantaged Business Enterprise and have a current Dun and
Bradstreet Number. More information about this program is available on
the USDOT’s website at: http://osdbu.dot.gov/bap/.