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 between 80 and 90% and cover losses and expenses incurred by an SBA approved participating surety should the small business default on the contract.

Active 59.016 Small Business Administration G - Insurance Fiscal Year 2016 Information available on SBA's website at www.sba.gov/about-sba/sba-performance
Fiscal Year 2017 Not available
Fiscal Year 2018 6,568,000,000 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 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. 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. Application and supplement information. Preapplication coordination is not applicable. 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. 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. Not applicable. The goal for completing the review of a bond guarantee application is 4.5 days. Additional information available on SBA's website at www.sba.gov. Additional information available on SBA's website at www.sba.gov. Not applicable. Contracts not exceeding $6.5 million, or $10 million for federal contracts with the certification of a Federal Contracting Officer, where a surety bond is required but not obtainable privately on 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 empowered to issue, service, and monitor bonds without prior SBA approval. Performance Reports: Information available at www.sba.gov. SBA has the right to audit its accounts with any participating surety. Each participating PSB surety must be audited every three years. SBA Headquarters maintains records on contractors in default and/or claim status (including recoveries on paid claims) as furnished by sureties. SBA Headquarters and each SBA Area Office have information about participating small businesses for its assigned geographic area. 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. Guarantee runs to termination of bond (usually completion of contract). Additional information available on SBA's website at www.sba.gov/osg. Applicants must contact an approved agent or broker of surety bonds. General program particulars may be obtained from SBA Area Offices listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration. Peter C. Gibbs, Director
409 3rd Street, SW
8th Floor
Washington, DC 20416 US
peter.gibbs@sba.gov
Phone: 202-205-6548 http://www.sba.gov/osg 73-4156-0-1-376 (Insurance (Guaranteed Surety Bonds)) FY 18$6,568,000,000.00; FY 19 est $6,500,000,000.00; FY 20 est $6,500,000,000.00; FY 17$1,392,000,000.00; FY 16$1,424,000,000.00; - Additional information available on SBA's website at www.sba.gov. 13 CFR 115. Not applicable.