A big announcement came out of Baton Rouge yesterday that stands to benefit Louisiana contractors, and in turn, many LCI policyholders.
The Louisiana Public Facilities Authority and the Louisiana Surety Association are introducing the Bonding Assistance Program to provide small construction companies with greater access to major construction projects. The program, administered by Louisiana Economic Development (LED), seeks to expand opportunities for small businesses to participate in the state’s economy.
According to the announcement, "The program will aid small construction companies in obtaining bid, payment and performance bonds needed to obtain work on substantial building projects. Contractors that are certified clients of LED’s Small and Emerging Business Development Program will be eligible for the Bonding Assistance Program, which was made possible by a low-interest loan from the LPFA.”
It further explained, "Construction is big business in Louisiana, but newer and smaller subcontractors often find it hard to work for prime contractors on substantial projects because they lack bonding capacity. The program seeks to assist small construction companies in Louisiana which do quality work but do not possess sufficient collateral to obtain the bonds needed to secure contracts on construction jobs.”
Click here to read the full announcement, and click here to learn more about the program.