MLBE Bonding Pilot Program

The Bonding Pilot Program offers a combination of technical assistance and financial support to help eligible businesses become “bond-ready,” improve their financial systems, and ultimately position themselves for growth.

Accounting Support:

Participating businesses may receive up to 30 hours of support from a Certified Public Accountant (CPA). These services focus on financial organization, cleanup, and preparation for bonding applications. In some cases, CPAs may also provide guidance to help businesses align their financial systems with industry and underwriting standards. While the City does not cover bonding costs, it does subsidize the majority of the CPA support.

Key Points:

• CPA assistance includes financial cleanup and bonding readiness.

• Support may help strengthen internal systems and reporting practices.

• Businesses pay $50/hour for up to 30 hours of CPA support.

• The City subsidizes the remaining two-thirds of the cost.

Legal Assistance

Participating businesses may access up to 10 hours of legal support, primarily focused on contract review and compliance readiness. In some cases, support may also include guidance on business structure to help ensure companies are properly positioned for public and private contracting opportunities. While the City does not fund legal services directly, the program offers subsidized support through legal partners. Businesses contribute a flat rate of $50 per hour for these services.

Key Points:

• Legal services focus on contract review and compliance with bonding requirements. Support may include limited guidance on improving business structure.
• Businesses pay $50/hour for up to 10 hours of legal assistance.
• Non-City partners subsidize the remaining cost of services. 

Bonding Support

Participating businesses may receive assistance in securing bonding through third-party surety providers. While the City of Grand Rapids does not provide direct funding for bonding costs, non-City partners will contribute toward the bond premium. Businesses are expected to cover between one-third and one-half of the total cost, depending on the amount and level of need. Support is available for bonding amounts up to $250,000.

Key Points:

• Bonds are issued through third-party insurance providers. Funding contributions come exclusively from non-City partners.
• Business cost-share ranges from 33% to 50% of the bond premium.
• Assistance is capped at bond amounts of $250,000 or less.

To participate in the Bonding Pilot Program, businesses must meet the following qualifications:

1. Be certified as a Micro Local Business Enterprise (MLBE) by the City of Grand Rapids Office of Equity and Engagement.

2. Be prequalified through the City’s Engineering Department as a subcontractor to perform work under $250,000, with preference given to firms operating in trades relevant to upcoming Grand River construction projects.

3. Complete and submit a Bonding Pilot Program Application Form to confirm interest and eligibility. (Please contact OEE to receive the application in Spanish)

The initial pilot is limited up to 8 businesses. While participation will be offered on a first come, first served basis, final selection will also involve a review process by City staff in collaboration with our technical assistance partners, including CPA and surety professionals. A scoring framework will be used internally to help assess business readiness and alignment with the goals of the program.  

As part of the pilot, participating businesses will be invited to events and workshops where they can engage directly with bonding agents, insurers, general contractors, and City representatives. These sessions are designed to demystify the bonding process and foster connections with industry professionals. Many of these events will be open to the general public to broaden awareness and support within the local business community.