Empowering Small Businesses with SBA Surety Bonds
SBA Surety Bond Guarantee Program
Unlock new opportunities and secure larger contracts with the SBA Surety Bond Guarantee Program. Tailored for small businesses, our program helps you obtain the necessary bonds to grow and succeed.
Overview of the SBA Surety Bond Guarantee Program
The SBA Surety Bond Guarantee Program is designed to assist small businesses in obtaining the bonds they need to compete for larger contracts. Key features include the streamlined QuickApp process for contracts up to $500,000, which offers faster approval times. The program guarantees bid, performance, payment, and ancillary bonds, making it easier for small businesses to secure the necessary bonding. By presenting a strong, well-prepared application, you increase your chances of approval and demonstrate your readiness to take on significant projects.
Frequently Asked Questions
Find answers to common questions about the SBA Surety Bond Guarantee Program, including eligibility, costs, and the application process.
What is an SBA surety bond?
An SBA surety bond is a bond guaranteed by the U.S. Small Business Administration, which helps small businesses obtain the bonds they need to bid on and secure contracts.
Why would I need an SBA surety bond?
SBA surety bonds are essential for small businesses that need bonding to bid on contracts but face challenges obtaining bonds through standard markets. They help you compete for larger contracts and grow your business.
What types of bonds does the SBA guarantee?
The SBA guarantees bid bonds, performance bonds, payment bonds, and ancillary bonds, covering the most common types of contract surety bonds required in various industries.
How much does an SBA surety bond cost?
The cost includes the surety company’s premium and the SBA fee, which is $6 per $1,000 of the contract amount for the first $100,000 and $9 per $1,000 for amounts over $100,000. The surety company’s premium varies based on factors like credit score and financial strength.
How long does it take to get approved for an SBA surety bond?
For contracts up to $500,000 that qualify for the QuickApp program, decisions are often made within hours. Larger or more complex applications may take several days to a few weeks.
What is the maximum contract amount for an SBA-guaranteed bond?
The SBA can guarantee bonds for contracts up to $6.5 million, or up to $10 million for federal contracts awarded under certain conditions.
Can new businesses qualify for SBA surety bonds?
Yes, new businesses can qualify. The SBA program is often more flexible than traditional surety markets, but you must demonstrate the capability to perform the contract, which may include relevant experience of the business owners or key employees.
What is the QuickApp program?
The QuickApp program is a streamlined process for bonds on contracts up to $500,000, requiring less documentation and offering faster decisions compared to the standard program.
Can I get an SBA bond for a private project?
Yes, SBA bonds are available for both government and private projects, providing flexibility for small businesses to secure necessary bonding across various contract types.
Take the Next Step with SBA Surety Bond
Ready to secure your future contracts? Apply for the SBA Surety Bond Guarantee Program today or reach out to an SBA-approved surety company or agent for personalized assistance. Don’t miss out on the opportunity to grow your business with confidence.