When small or new contractor businesses want to grow and bid on government projects at the local, state, or federal level, they are required to obtain surety bonds. By doing so, the contractor shows that they are serious about protecting the government entity that owns the project. But new, small, or minority-run businesses may need help competing with larger or more well-established business. That’s where the SBA Bond Guarantee Program comes in.
How Does the SBA Bond Guarantee Program Work?
A surety agency, such as Brunswick Companies, holds a membership with the Small Business Administration (SBA) Surety Bond Guarantee Program. Surety agents help small or new contractors get the bond they need to win contracts and ultimately grow their business.
The SBA guarantees four types of surety bonds, including:
The SBA Bond Guarantee Program benefits small and new businesses that have the potential to grow but need a financial or experiential boost to move forward in their competitive market.
Who is Eligible for the SBA Bond Guarantee Program?
SBA bond applicants must meet certain eligibility criteria established by the SBA and the surety agent. To be eligible for an SBA surety bond, contractors must:
- Qualify as a small business according to SBA size standards
- Have a small contract (i.e., up to $6.5 million for non-federal contracts and up to $10 million for federal contracts)
- Meet the surety agency’s capital, capacity, and character requirements
Application Process for Small Business Bonds
Contractors can apply for surety bonds by completing the SBA application and receiving approval through a surety agent. Brunswick Companies may add additional information to the bond application, such as the contract amount and dates. The surety agent submits the bond application to the SBA for final approval.
Brunswick Companies offers a breadth of surety bonds unmatched in the industry. We are licensed in all 50 states and maintain a network of more than 30 markets. We’re able to secure standard, exclusive, specialty, and hard-to-place surety bonds.
To apply for a bond through the SBA Surety Bond Guarantee Program, please request a quote.