Minority Business Development Division
The Minority Business Bonding Program provides bid, performance, and payment surety bonds to state certified minority-owned businesses that are unable to obtain bonding through standard surety companies. To be eligible for this program, the project must be economically feasible; and the minority business must not have defaulted on a previous bond issued by the Ohio Development Services Agency.
The maximum bonding line pre-qualification is $1 million per business. The premium for each bond requested is 2 percent of the face value of the bond. The business must demonstrate the benefit to Ohio residents by increasing employment opportunities. The collateral and/or security are the personal guarantees of the principals and persons substantially involved in business operations, and other such collateral as warranted.
Once accepted into the program, businesses will be required to provide quarterly financial statements prepared by an independent certified public accountant, a license public accountant or a preparer acceptable to the Director to maintain their eligibility.
The Director will require removal of state tax liens.
There is no fee for Minority Business Bonding Program application and there is no fee for bid bonds if the applicant's bid is not successful.
The applicant shall pay a premium (in advance) for each bond to be issued by the Director. This is not to exceed two percent of the penal sum of the bond. The premium may be adjusted upward or downward if the contract amount is changed by more than the less of 5% or $10,000.00.
The review and approval process begins when the company submits a bonding application. The application and supporting documentation are then reviewed by the Minority Development Financing Advisory Board (which meets every fourth Tuesday).
If approved, the application is submitted to the State Controlling Board for approval, and a pre-qualification letter will be issued to the company to allow it to submit request(s) for actual bond issuance.