SBA Surety Bond Guarantee Program
Taking your construction company to the next level isn’t easy without the right support. It requires your company to bid on larger contracts, thereby increasing your bonding capacity. The U.S. Small Business Administration (SBA) Surety Bond Guarantee Program helps contractors overcome traditional underwriting barriers by providing a federal guarantee to surety companies.
Surety Bond Professionals (SBP) is a family-owned and operated bonding agency with over 100 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 surety bond backed by the Surety Bond Guarantee Program.
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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.
This guarantee allows surety companies to provide bid, performance, and payment bonds to small businesses that may not qualify through traditional underwriting standards. By reducing the surety's risk, the SBA program helps contractors secure larger bond programs and greater bonding capacity than they might otherwise obtain in the standard marketplace. The SBA Surety Bond Guarantee Program continues to play an important role in helping small businesses access the bonding they need to grow and compete for more projects.
- Contract value: Gaining more ability to qualify for contracts that range from $9 million to $14 million, increasing potential contract value.
- New project opportunities: Securing bid, performance, and payment bonds helps contractors compete for new projects and supports business expansion.
- Reduced underwriting friction: Leveraging a process that favors small and emerging contractors without having to rely on traditional market avenues.
- Clear pathways: Creating a clear pathway to establish a presence and experience of working in the public sector.
- Business size: The company must meet the SBA’s definition of a small business, based on industry standards and revenue at the time of application.
- Bond specifics: The program applies specifically to construction-related contract bonds. This covers bid bonds, performance bonds, and payment bonds. It doesn't apply to license bonds.
- Contract size: Non-federal contracts for less than $9 million and federal contracts up to $14 million will qualify for an SBA guarantee.
- Underwriting criteria: Applicants must meet the SBA's standards for creditworthiness, capacity, and character. This will include a review of financial statements, repaid debts, credit history, and integrity.
- Bid bonds: A bid bond ensures that contractors proceed with entering into a contract if they are the low bidder. It's a way of preventing project owners from wasting time and money if the bidder backs out later. By compensating project owners for the costs of restarting the bidding process, it safeguards their financial position.
- Performance bonds: A performance bond guarantees that the contractor will complete the project per the contract terms. It's most commonly required on public construction projects. It's also becoming a popular choice for private owners, who are increasingly using these bonds to protect their investments and prevent potential financial losses.
- Payment bonds: A payment bond guarantees that the contractor will pay all laborers, material suppliers, and other contractors in accordance with the original contract agreement. They protect against potential nonpayment if a contractor becomes insolvent.
- Maintenance bonds: A maintenance bond, also known as a warranty bond, protects the project owner from financial loss if defects are found after the project is complete.
SBP is a family-owned business with over 100 years of experience and access to over 40 distinct surety markets. We don't just process your paperwork. Instead, we dedicate time and effort to understanding your project pipeline, financial health, and future business goals. We then design a surety program that aligns with these goals. This helps our surety agents better advocate for your company and deliver the right SBA surety program for today and the future.
Getting a bond through the SBA guarantee program can take a few days, depending on the size of the project and how quickly you provide documentation. As your dedicated SBA-authorized surety agent, Surety Bond Professionals can provide you with this specialized support. With over 100 years of experience, our experts can help streamline the process and guide you through each step for a quick application process.
Our technical expertise and consultation can reduce risk, allowing for a larger bonding capacity to help secure your federal construction projects. We'll simplify the complex program requirements so you can focus on expanding your business.
To qualify for the SBA Surety Bond Guarantee Program, you'll need to qualify as a small business under SBA size standards. Usually, contracts go up to $9 million for non-federal projects and $14 million for federal ones. You'll also need to satisfy the credit, capacity, and character criteria set by the surety company. As your Bonding Partner, we'll help you understand these requirements to better prepare your application.
You can obtain a surety bond through the SBA guarantee program with an experienced Bonding Partner, and you'll need documents showing your company's financial health and operational capacity. Our surety agents will help you complete the application. Documentation may include current financial statements, work-in-progress schedules, bank statements, and resumes of key personnel.
For federal construction projects, you may also need to provide details regarding past performance and future projections. We'll work with you to organize and present this information to the surety company to help maximize your opportunity for approval and secure the bond you need.
Get Started With Your SBA Surety Bond Program Today
It doesn’t matter if you’re establishing your first bonding program or looking to expand your limits. We’re ready to support your long-term growth. Trust SBP and begin working on being awarded your next major contract. By explaining the nuances and strategic benefits of an SBA bonding program, our experts align your goals with the surety bond landscape.
Are you a contractor looking for a strategic partner who anticipates your needs and provides expert support that evolves with your business? Make sure you’re ready for the next bid opportunity. Contact Surety Bond Professionals today to schedule your complimentary consultation and discuss your SBA bonding strategy today.
Speak With an SBA Authorized Surety Advisor
Get the construction bonds you need through the SBA Surety Bond Guarantee Program. We help contractors qualify for higher bond limits, competitive rates, and flexible terms so you can win more projects.