The SBA has noted two important changes to its Surety Bond Guarantee Program that will increase contract opportunities for small contractors, supporting them to grow their business operations. The following changes will become effective on Sept. 20, 2017:
1. The SBA will increase the guarantee percentage ceiling in the Preferred Surety Bond Program from 70 percent to 90 percent. The SBA guarantee will be 90 percent if the original contract amount is $100,000 or less, or if the bond is issued to a small business that is owned and controlled by socially or economically disadvantaged individuals, veterans, service disabled veterans, or certified HUBZone and 8(a) businesses. All other guarantees will be 80 percent.
2. The eligible contract amount for the Quick Bond Application (Quick Bond) will increase to $400,000 from $250,000. The Quick Bond is a streamlined application process with reduced paperwork requirements that is used in the Prior Approval Program for smaller contract amounts. SBA review and approval requires minimal time, allowing small businesses to bid on and compete for contracting opportunities without delay.
For more information on the SBA Surety Bond Guarantee Program, please visit www.sba.gov/surety-bonds.