SBA Surety Bond Guarantee Program
The U.S. Small Business Administration's (SBA) Surety Bond Guarantee Program — with cooperation from the surety industry — assists small construction companies in obtaining required bonds for federal, state, local, and commercial construction projects, as well as service and supply contracts and subcontractors. Small and emerging contractors grow by increasing their contracting opportunities, especially through public sector construction projects. Brunswick Companies recognizes the importance of providing bonds to small, minority, and emerging contractors, and has partnered with the SBA to provide a program for them.
SBA Surety Bond Guarantee Program Overview
The Surety Bond Guarantee Program helps small and new contractors obtain bonds through regular commercial channels. Often, new contractors have the knowledge and skills necessary for success, but lack the combination of experience and financial strength needed to secure bonds at a competitive rate. This government guarantee allows sureties to write bid, performance, and payment bonds for contractors who may otherwise not meet their minimum standards, thus providing contractors with opportunities they may not qualify for.
SBA Surety Bond Guarantee Program Eligibility
In addition to our bonding qualifications, the following SBA eligibility requirements apply:
- Each individual public or private contract or subcontract must be $6.5 million or less
- For direct federal contracts, SBA can guarantee up to $10 million if a federal contracting officer certifies that SBA’s guarantee is necessary for the small business to obtain bonding
- The contractor must qualify as a small business under federal regulations based on their primary NAICS code
- The contractor and its owners must have a good reputation. They must not be presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from transactions with any federal department or agency
The SBA guarantees bid, performance, and payment bonds including ancillary bonds incidental to the contract and essential for its performance. They also include maintenance bonds for defective workmanship and materials, provided the term does not exceed two years.
How To Apply to the SBA Surety Bond Guarantee Program
If you would like to apply for a bond through the SBA Surety Bond Guarantee Program, please begin by clicking on the Request a Quote button below.
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