NJEDA Board Approves New Funding for Small Business Bonding Readiness Assistance Program
Grants $500,000 in Funding to Help Small Businesses Qualify for Government Contracts
Trenton, N.J. (May 11, 2022) – The New Jersey Economic Development (NJEDA) Board today approved two contracts, one with the African American Chamber of Commerce of New Jersey (AACCNJ) and one with the Statewide Hispanic Chamber of Commerce of New Jersey (SHCCNJ) to administer the Small Business Bonding Readiness Assistance Program. This program will provide small businesses with training and surety bonding education through a series of workshops and strategic consulting sessions designed to increase small businesses’ bonding knowledge and capacity.
Since the program was first launched in 2018, facilitated by a contract with the AACCNJ, 105 business owners have graduated from the program. Of those, 50 have qualified for a combined total of $40 million in government contracts.
The new phase of funding approved today will provide up to $250,000 to both the AACCNJ and the SHCCNJ to conduct a series of courses designed to enhance business practices in the following subject areas: accounting and financial presentation, operational efficiency, marketing, surety bonding capacity, construction and contract law, certification, and financing. The collective goal of the program is to better position small businesses to qualify for surety bonding, and as a result, more competitively bid on public works projects or perform contracts offered by the State or federal government.
Through the Small Business Bonding Readiness Assistance Program, both the AACCNJ and the SHCCNJ will graduate at least 60 small businesses from the program each year. Due to an increased appropriation, the program’s funding doubled, therefore allowing NJEDA to contract with an additional entity to ensure that more New Jersey small businesses have access to these free resources, services, and tailored assistance.
“Small businesses are the driving force of New Jersey’s economy, and under Governor Murphy’s leadership, we have prioritized connecting businesses with the resources they need to persevere, grow, and thrive,” said NJEDA Chief Executive Officer Tim Sullivan. “The Small Business Bonding Readiness Assistance Program is a testament to New Jersey’s commitment to ensuring that all businesses, especially minority and women-owned businesses, have access to the tools necessary to remove barriers to entry while bidding on government contracts.”
“We are pleased to continue our partnership with the NJEDA and the Murphy Administration in their collective commitment to leveraging the ideals and resources provided through the AACCNJ to strengthen underperforming sectors of New Jersey’s economy,” said AACCNJ Founder, President and CEO John E. Harmon, Sr., IOM. “As small businesses continue to drive our state’s post-COVID economic recovery, providing resources and information to black-owned, women-owned, and minority-owned businesses has never been more important. Through the Small Business Bonding Readiness Assistance Program, New Jersey is ensuring that all small businesses can compete in the state and federal contracting process in a more equitable and inclusive manner.”
“Empowering small businesses to participate in the surety bonding process is an essential step in removing barriers to entry for minority and women-owned businesses that want to obtain state and federal contracts,” said SHCCNJ President and CEO Carlos Medina. “The Small Business Bonding Readiness Program is a tremendous asset for small businesses owners who are looking to succeed in today’s ever-changing economy.”
The AACCNJ and SHCCNJ were selected based on proposals submitted earlier this year in response to a Request for Proposals from qualified non-profit business advocacy membership associations with demonstrated prior experience in contracting with other governmental or public entities to administer surety bonding support services.
The Chairwomen of New Jersey’s Legislative Latino Caucus and the state’s Black Legislative Caucus applauded today’s announcement, noting the benefits it will bring to their constituents.
“I am thrilled that the successful Small Bonding Readiness Assistance Program is expanding and that the SHCCNJ will now be one of the administrators,” said Senator Nellie Pou. “New Jersey is home to more than 120,000 Hispanic-owned businesses and this program will better position them for future growth.”
“The AACCNJ has long been a leading force in empowering Black business owners and connecting them with the tools necessary to thrive,” said Assemblywoman Shavonda E. Sumter. “By committing this pivotal funding to this AACCNJ-administered program, the NJEDA is investing in the future of Black-owned businesses and ensuring they possess the necessary skills and resources needed to compete for state contracts.”
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
To learn more about state resources available to New Jersey entrepreneurs and early-stage companies, visit https://www.njeda.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.
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