Pilot Concept

The Sheltered Bond Program is a pilot program started by the Minority & Women Educational Labor Agency (MWELA). The purpose of the Sheltered Bond Program is to provide the opportunity for Minority, Women, and Disadvantaged Owned Contracting Companies to receive a bond for the first time or increase their current bond capacity through a well-designed, structured and monitored program.

General Description

Twenty-five (25) MWBE/DBE contractors will be selected to participate. The potential bonding capacity that each of the twenty-five (25) contractors could receive will be determined based on a set criteria to include but not limited to, work history, financial strength, etc. The guidelines for this determination will be in alignment with the bonding criteria for the bonding company. Each contractor will be given the opportunity to receive bonding capacity up to $1 million depending on their qualifications.

The Goal of this Program is to ensure that in the second year, the same twenty-five (25) contractors have successfully performed on their initial bond in year 1 will be given the opportunity for bonding capacity at an increased amount of $1 million or more. As in year one, the bonding capacity will be determined on their qualifications and performance. If successful, the bonding capacity given to the contractor in year 1 will be able to assist them in starting to build a positive history to receiving a higher performance bond in year 2.

Financial Structure

In addition to the opportunity to receive bonds up to $1 million, contractors will be eligible to receive loans for capitalization funding up to 25% of their initial bond not to exceed $100,000 once a construction contract has been executed and a bond had been given.

Business Development

In order to be considered, MWDBE contractors must agree to participate in the Business Development component of the program for a period of six (6) months. The contractors will be required to attend a mandatory meeting once a month. By participating in the meeting contractors will receive technical assistance to help build the structure, capacity and sustainability of their companies. Contractors will be required to attend the Blue Print for Success Program at the University of Pittsburgh. In addition to the mandatory meetings and the Blue Print for Success Program, participants will have the opportunity to receive the following benefits by participating in the Business Development Program.

Additional Benefits:

  • One-on-one business development training to each contractor participating in the program.
  • Alternative training for program participants to assist in developing their construction skill set (i.e. blue print reading, preparing a statement of qualifications, etc.)

Useful Links

Note: Any participating contractors who do not attend or comply with the requirements of the SBP will be removed from the program and forfeit the opportunity.

For more information contact:

Kirk Anderson
Recruitment Coordinator
Work Phone: 412-697-2655
Cell Phone: 412-508-1882
kanderson@mwela.net