Category: Surety Bonds

Trump Administration Tariffs Impact Bonds Covering Imports

If your business imports goods into the U.S., the tariffs recently imposed by the Trump administration have likely created some uncertainty:

• Are they simply a negotiating tactic, and will they ultimately be rescinded?
• How long will they be in place?
• How will that impact your costs?
• Can they be passed on to your customers?
• Is there an alternative available?

These are some of the questions that may be running through your mind as you try to decide how to react to the current trade reality.  Continue reading

The Digital Future of Surety Bonds

Leaders in the surety industry recognize that to stay relevant, surety professionals must adopt technological solutions to enhance the issuance, delivery and security of surety guarantees, which …Continue Reading

LIHTC Recapture Bonds for Affordable Housing

There are many different uses for surety bonds in the Affordable Housing industry. In our surety practice, we work frequently with contractors and developers on LIHTC deals – from performance and payment bonds for the contractor to completion or “subdivision” bonds for the LIHTC developer.

LIHTC Recapture Bond

Recently, after noticing the growing need from clients and Affordable Housing leaders, we decided to develop a LIHTC Recapture Bond program. Disposing of or purchasing a LIHTC property prior to the end of the 15-year compliance period can be a significant challenge as many institutional tax credit investors are hesitant to allow a change in ownership during the tax credit compliance period. In the past, the IRS required a bond; while that requirement is no longer in place, many investors are requiring a surety bond or another form of collateral.  Seeing this need in the market, we have partnered with an international surety company to develop a proprietary surety product.  Continue reading

Construction Industry Issues Takeaways from the CAGC Summer Summit

Nearly 800 contractors, suppliers, service providers and guests attended the Carolina’s Associated General Contractors (CAGC) Summer Summit last month to discuss issues impacting the construction industry throughout the region. The topics discussed at the conference were focused on the building, utility and highway divisions of construction; however, several trends permeate the entire industry and even other industries with a similar workforce and/or risk exposures.

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Managing Cash Flow in Construction

“We were always focused on our profit and loss statement. But cash flow was not a regularly discussed topic. It was as if we were driving along, watching only the speedometer, when in fact we were running out of gas.”  – Michael Dell, Founder & CEO of Dell Technologies

It takes a broad skill-set to run a successful construction business and navigate the significant risks inherent in the industry.  Not only do you need to know the ins and outs of construction, you must also be skilled at business management and finance.  From executing contracts to understanding the bid process to managing resources, not the least of which is cash. The quote above from Michael Dell about cash flow is very timely and applicable for contractors.  A large surety company recently listed its “Top 10 Reasons Contractors are at Risk of Failing,” with Insufficient Cash Flow as #4 on the list.  Cash flow issues have historically been at the top of similar lists of construction industry risks.  The ability to quickly access cash is the universal resource to fix just about any issue that arises.

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