The U.S. Small Business Administration’s Surety Bond Guarantee program has helped small and emerging contractors who lack experience and financial strength to obtain bonds through regular commercial channels. The SBA guarantees bid, payment, and performance bonds issued by select surety companies, allowing contractors who otherwise would not meet their minimum standards to obtain bonds.
Old Republic Surety is pleased to partner with the SBA as a “Prior Approval” surety, providing bonds up to $10 million for federal projects and up to $6.5 million for any public or private contract or subcontract project.
SBG Program Is a Good Fit For:
Start-ups & firms in business less than 3 years
Firms with limited financial resources or job history
Firms wishing to increase current bond limits
Firms desiring to replace/reduce collateral
Subcontractors interested in establishing capacity
Business Eligibility
Construction, Service & Supply Firms
$8 million revenue limit for some services such as landscaping
$16.5 million limit for most specialty trades
$39.5 million limit for heavy construction
Ownership variables, good character & reasonable expectation of completion
Contractor was unable to obtain bond elsewhere with reasonable terms
The type of financial information required is based on the size and type for the project. For those seeking smaller bonds for certain types of projects, the SBA QuickApp program offers easy qualification without providing any financial statements.
