Surety Bond Guarantees


To guarantee surety bonds issued by Treasury listed surety companies for small businesses unable to obtain a bond without an SBA guarantee. The guarantees range up to 80% and 90% and cover losses and expenses incurred by an SBA approved participating surety should the small business default on the contract.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Small Business Administration
Type(s) of Assistance Offered
G - Insurance
Program Accomplishments
Fiscal Year 2016 Information available on SBA's website at
Fiscal Year 2017 Not available
Fiscal Year 2018 6,568,000,000
Fiscal Year 2022 In FY 2022, the SBA guaranteed more than 8,300 bid and final (payment and performance) bonds for a combined contract value of $6.3 billion, which supported over 33,000 jobs through the Surety Bond Guarantee program. For more information about SBA accomplishments, access the SBA Congressional Budget Justification and Annual Performance Report:
Fiscal Year 2023 In FY 2023, the SBA guaranteed more than 9,200 bid and final (payment and performance) bonds for a combined contract value of over $7.2 billion, which supported nearly 38,000 jobs.
Small Business Investment Act of 1958, Title IV, Part B (15 U.S.C. 694a et seq.), Title IV, Part B, Section 410, Public Law 108-447
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Guarantees are limited to those surety companies holding certificates of authority from the Secretary of the Treasury as an acceptable surety for bonds on Federal contracts. Specific criteria apply to the Prior Approval and PSB Sureties.
Beneficiary Eligibility
For most contracts, a small business is eligible for bond guarantees issued by the surety bond program if it qualifies as a small business under Code of Federal Regulations Subpart 121, Size Eligibility Provisions and Standards. To learn more, visit
Application and supplement information.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. A small business must apply directly to a surety agent who represents a participating surety company. The application includes background, credit, and financial information. Under the Prior Approval Program, the surety company deals directly with the SBA Area Office concerning the bond guarantee. Headquarters, Area and District SBA Offices serve as contact points for program information purposes.
Award Procedure
Under the Prior Approval Program, SBA notifies the surety company of SBA's approval of the guarantee and furnishes the surety with e-mail authorization. Surety company (or agent/broker) notifies the bond applicant and issues the bond. Preferred sureties issue bonds guaranteed by SBA without SBA's prior approval. Prior approval and PSB sureties remit a percent of the premium they charge small businesses to SBA. Small businesses pay SBA a fee based on the percentage of the contract price.
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
The goal for completing the review of a bond guarantee application is 4.5 days.
Additional information available on SBA's website at
Additional information available on SBA's website at
How are proposals selected?
Not applicable.
How may assistance be used?
Contracts within eligibility parameters outlined under Code of Federal Regulations Subpart 115, Surety Bond Guarantee, where a surety bond is required but not obtainable privately with reasonable terms and conditions. Guarantee is for bid, payment, and performance bonds (and ancillary bonds incidental to the performance of a specific contract). It is provided directly to the surety and/or an authorized agent for a particular contract. Under the Prior Approval program, sureties must apply to SBA for each guarantee. Sureties in the Preferred Bond Program are delegated authority to issue, service, and monitor bonds without prior SBA approval.
What are the requirements after being awarded this opportunity?
Performance Reports: See SBA’s Budget and Performance reports at
?115.21 Audits and investigations. (a) Audits-- (1) Scope of audit. SBA may audit in the office of a Prior Approval or PSB Surety, the Surety's attorneys or consultants, or the Principal or its subcontractors, all documents, files, books, records, tapes, disks and other material relevant to SBA's guarantee, commitments to guarantee a surety bond, or agreements to indemnify the Prior Approval or PSB Surety. See ?115.18(a)(3) for consequences of failure to comply with this section. (2) Frequency of PSB audits. Each PSB Surety is subject to an audit at least once every 3 years by examiners selected and approved by SBA.
SBA Headquarters maintains records on contractors in default and/or claim status (including recoveries on paid claims) as furnished by sureties.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Guarantee runs to termination of bond (usually completion of contract). Method of awarding/releasing assistance: Additional information available on SBA's website at Additional information available on SBA's website at
Who do I contact about this opportunity?
Regional or Local Office
Program applicants must contact an SBA-authorized surety bond agent or broker. SBA-authorized agencies are found on General program particulars may be obtained from SBA District Offices listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration. Surety agencies and surety companies interested in issuing SBA-guaranteed bonds should visit SBA's
Headquarters Office
Jermaine Perry, Director OSG
409 3rd Street, SW
8th Floor
Washington, DC 20416 US
Phone: 202-401-8275
Website Address
Financial Information
Account Identification
(Insurance (Guaranteed Surety Bonds)) FY 23$2,333,000,000.00; FY 24 est $6,000,000,000.00; FY 25 est $6,000,000,000.00; FY 22$0.00; FY 21$6,970,902,224.00; FY 20$7,189,610,122.00; FY 19$6,221,000,000.00; FY 18$6,568,000,000.00; FY 17$1,392,000,000.00; FY 16$1,424,000,000.00; -
Range and Average of Financial Assistance
Additional information available on SBA's website at
Regulations, Guidelines and Literature
13 CFR 115. SOP 50 45 3, The Surety Bond Guarantee Program SOP 50 46, Claims and Recovery Program SOP 50 49, Preferred Surety Bond Program
Examples of Funded Projects
Fiscal Year 2022 The Surety Bond Guarantee program guarantees individual contracts of up to $6.5 million and up to $10 million for federal contracts if a federal contracting officer certifies that such a guarantee is necessary. The SBA’s guarantee ranges from a maximum of 80 percent to a maximum of 90 percent of the surety’s loss if a default occurs.


Federal Grants Resources