DOT to Help Small Businesses Compete

The Department of Transportation will make $20 million in recovery funds available to help small and disadvantaged businesses better compete for work on transportation projects funded by the American Recovery and Reinvestment Act.

U.S. Transportation Secretary Ray LaHood on Aug. 31 announced the creation of the Disadvantaged Business Enterprise Bonding Assistance Program.

Through the program to be administered by the Department of Transportation’s Office of Small and Disadvantaged Business Utilization, small and disadvantaged businesses can apply to be reimbursed for bonding premiums and fees incurred when competing for, or performing on, transportation infrastructure projects funded by ARRA. The program is intended to help businesses with traditionally less working capital than larger contractors.

Small businesses are typically those with fewer than 500 employees. Disadvantaged businesses are at least 51 percent owned by one or more socially and economically disadvantaged individual, that is, a member of one of the following groups: Women, American Indians/Native Americans, Asian- Pacific/Asian-Indian Americans, Black/African Americans, Hispanic Americans. To be certified as a DBE, a firm must be a small business owned and controlled by socially and economically disadvantaged individuals.

“The Obama Administration is committed to doing all it can to help DBE’s realize the American dream and contribute to making our transportation systems even better,” said Secretary LaHood. “These Recovery dollars will help level the playing field so these companies have the tools and resources they need to compete.”

Contact Thomas L. Gallagher at tgallagher@joc.com.