1: Surety Bond Guarantees

Guarantee bid, payment, and performance bonds on contracts up to $6.5 million for small and emerging contractors who cannot obtain surety bonds through regular commercial channels.

Other Information:

Under the Surety Bond Guarantee program, the SBA guarantees bid, payment, and performance bonds on contracts up to $6.5 million for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA can guarantee a bond for a contract up to $10 million if a Federal contracting officer certifies that SBA's guarantee is necessary for the small business to obtain bonding. The SBA guaranty gives sureties an incentive to provide bonding for eligible contractors and thereby increases a contractor's access to contracting opportunities. Under the surety guaranty, an agreement between a surety and the SBA, the Agency assumes between 70 percent and 90 percent of the loss in the event of contractor default.

Stakeholder(s):

• Small Contractors: who cannot obtain surety bonds through regular commercial channels.
  •  (Beneficiary)


• Emerging Contractors: who cannot obtain surety bonds through regular commercial channels.
  •  (Beneficiary)

Objective(s):

1: Businesses & Jobs

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