News Room

FOR IMMEDIATE RELEASE
March 26, 2007

Columbus, OH -- Lt. Governor Lee Fisher today announced the creation of the Encouraging Diversity Growth and Equity (EDGE) Bond Guarantee Program, which is designed to encourage surety companies to increase bonding activity with Ohio’s economically and socially disadvantaged firms. The program enables the Ohio Department of Development (ODOD) to guarantee a portion of bonds awarded to businesses by participating surety companies.

"Disadvantaged businesses frequently encounter obstacles when bidding on significant public and private-sector contracting opportunities,” said Lt. Governor Fisher, who also serves as Director of the Ohio Department of Development. “The Department of Development is responding to the needs of disadvantaged firms by developing a program that will fill financing gaps and meet a great need here in our state for increased small and minority business contracting opportunities."

The Department of Development is working in concert with representatives of the Surety & Fidelity Association of America and the Ohio Surety Association to develop the program. The ODOD will reimburse up to 90 percent of losses incurred and paid by the surety if an eligible business defaults on any bid, performance or payment bond issued by the surety.

The State Controlling Board today approved creation of the program by releasing more than $2.2 million to provide $745,000 to three companies that will participate as sureties in the program. These firms include: CNA Surety Corporation; Great American Insurance Company; and the Ohio Casualty Insurance Company. These sureties are listed with the U.S. Treasury Department and are rated excellent or better by A.M. Best, a credit rating organization serving the financial services industries.

Businesses eligible for participation in the EDGE Bond Guarantee Program must receive EDGE certification through the Ohio Department of Administrative Services. The State’s EDGE program establishes goals for state agencies in awarding contracts to socially and economically disadvantaged businesses that are certified under the program.

For more details, visit http://www.odod.state.oh.us/DMBA/

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Media contacts: Melissa Ament at (614) 466-6619 or Maria Smith at (614) 466-2382