Foundation Surety is the #1 agency for SBA’s surety bond guarantee program.

The Small Business Administration (SBA) Surety Bond Program is a federal initiative designed to assist small businesses, including those owned by minorities, women, veterans, and economically disadvantaged individuals, in obtaining surety bonds for government contracts. The program aims to enhance the participation of small businesses in the government contracting arena by providing bonding support and mitigating the challenges they may face in securing bonding capacity.

Key features of the SBA Surety Bond Program include:

Bond Guarantee
The SBA provides a guarantee to surety companies for bid, payment, and performance bonds issued to eligible small businesses. This guarantee serves as a form of collateral, encouraging sureties to issue bonds to small businesses that might otherwise face challenges in obtaining them.

Bid Bonds
Bid bonds are issued to contractors as a guarantee that they will enter into a contract if awarded. The SBA Surety Bond Program assists small businesses in obtaining bid bonds, enabling them to participate in the competitive bidding process for government contracts.

Payment and Performance Bonds
Payment bonds ensure that subcontractors and suppliers are paid for work performed, and performance bonds guarantee that the contractor will complete the project according to the contract terms. The SBA program supports small businesses in securing these essential bonds for government projects.

Contracting Assistance
The program provides contracting assistance to small businesses, helping them understand and navigate the bonding process. This includes educational resources, training programs, and support in preparing and submitting bond applications.

Eligibility Criteria
Small businesses seeking assistance through the SBA Surety Bond Program must meet certain eligibility criteria. This includes being a small business as defined by the SBA, demonstrating the ability to perform on contracts, and meeting other program-specific requirements.

Preferred Surety Companies
The SBA maintains a list of surety companies that are preferred participants in the program. Small businesses are encouraged to work with these sureties to streamline the bonding process and benefit from the SBA guarantee.

Contract Size Limitations
The SBA Surety Bond Program has specific limits on the size of contracts for which it can provide bonding support. These limits vary depending on the type of construction work and the small business’s status (e.g., veteran-owned, disadvantaged).

Business Development Assistance
In addition to bonding support, the SBA provides business development assistance to help small businesses grow and succeed in the federal contracting arena.

The SBA Surety Bond Program plays a crucial role in leveling the playing field for small businesses, enabling them to compete for and perform on government contracts. It contributes to the economic growth and development of small businesses by providing them with access to bonding opportunities that might otherwise be challenging to secure.