#YourBondPartner
SBA Surety Bond Guarantee Program
Surety Bond Professionals is a family-owned and operated bonding agency with over 75 years of experience. With access to a broad range of surety markets, our SBA Authorized Surety Agents are ready to assist you with securing a SBA surety bond backed by the SBA Surety Bond Guarantee Program.
Learn More
Learn more about the SBA Surety Bond Guarantee program or contact our SBA Authorized Surety Agents for assistance with any questions you may have.
Approved to offer SBA guaranteed bonds through the SBA’s Surety Bond Guarantee Program.
The SBA Surety Bond Guarantee (SBG) Program was established in 1971 to support small businesses that might otherwise struggle to obtain surety bonds due to limited financial resources, credit history, or experience.
Bonding is often a barrier for small contractors trying to secure government and private contracts, so the Small Business Administration surety bond program began to provide a federal guarantee that reduces risk for surety companies.
The Surety Bond Guarantee Program has helped thousands of small businesses get the bonding they need over the years by ensuring a portion of the bond amount—between 70% and 90%. SBA has also expanded into:
- Contract Bonds: for federal, state, and local projects.
- Quick Application Processes: for contracts up to $400,000 through the SBA’s QuickApp Program.
- An Increase in Guarantee Limits: to provide more flexibility for small businesses in securing larger contracts.
- Business size. Applicants must meet the SBA’s definition of a small business.
- Type of surety bond sought. Only contract bonds such as bid bonds, performance bonds, and payment bonds are guaranteed. License bonds are not eligible.
- Contract size. Non-federal contracts for less than $9 million and federal contracts up to $14 million qualify for an SBA guarantee.
- Underwriting standards. Applicants must meet the SBA’s underwriting standards for credit, capacity, and character
Applications to the SBA for a surety bond guarantee are submitted by either the bonding company or agent rather than by the small business directly. If an application is approved, the surety company gains the confidence to issue a surety bond.
Contact one of our SBA Authorized Surety Agents today to discuss your bonding needs.
When a claim is filed against a contract bond backed by the SBA Bond Guarantee Program, the process is the same as with any other surety bond claim: the bonding company (the “surety”) makes sure the claim is valid, pays it on behalf of the bonded business (the “principal”), then collects reimbursement from the principal.
The only difference with an SBA surety bond is that the SBA covers much of the principal’s debt to the surety (80-90%) if the principal does not reimburse the surety in full.
- Step 1: Determine Eligibility – Use the SBA website to check if your business meets the SBA size standards and your contract value aligns with the SBA bond program limits.
- Step 2: Prepare Documentation – Gather together all of the essential documents, such as financial statements, project details, and work experience.
- Step 3: Contact an SBA-Authorized Surety Agent – Contact Surety Bond Professionals to speak to an agent who can help you with your application.
- Step 4: Submit the Application – Complete and submit SBA Form 994 through your agent.
- Step 5: Underwriting & Approval – From here, the SBA and surety agency will review your application.
In addition to the bond premium, the principal must pay the SBA a small flat fee (currently 0.6%).
Below are some of the surety bonds that the SBA Surety Bond Guarantee Program can help you secure through a surety agency:
1. Bid Bonds
A bid bond makes sure contractors follow through on their bids, preventing project owners from wasting time and money if the bidder backs out later. By compensating project owners for the expenses associated with restarting the bidding process, it safeguards the owner's financial position.
2. Performance Bonds
A performance bond guarantees that the contractor will complete the project as agreed. Private owners are increasingly using these bonds to safeguard investments and prevent financial loss.
3. Payment Bonds
Payment bonds guarantee the contractor will pay all laborers, material suppliers, and contractors per the agreements made.
4. Maintenance Bonds (Warranty Bonds)
Maintenance bonds, also called warranty bonds, protect the project owner from financial harm in the case that defects appear once the project is complete.
5. Supply Bonds
Supply bonds guarantee that materials are delivered in a timely manner per the contract. However, they do not cover labor or installation costs.
SBA has a wealth of information available to help contractors understand, apply for, and secure a bond backed by the SBA Surety Bond Guarantee Program. One such resource is the webinar they host.
Through SBA-hosted webinars, contractors can learn how the program works, who qualifies, and how to apply. These sessions provide valuable insights into bonding requirements, the application process, and strategies to improve eligibility.
Get A Quote
Our surety bond professionals will help you get the construction bonds you need through the SBA Surety Bond Guarantee Program with the largest single/aggregate capacity and best terms possible.