Does the SBA issue bonds?
What types of businesses are eligible to participate in the program?
How do I obtain an SBA Surety Bond Guarantee?
Once the Surety Company receives the completed forms and sufficient information (see General Surety Bond FAQ) information from the applicant, it processes and underwrites the application. The Surety Company decides whether to execute the bond with or without the SBA's guarantee.
Does the SBA require any special forms?
Form 912 Statement of Personal History - this form must be completed by a proprietor; each partner; and each officer, stockholder or director holding 20% or more voting stock in a corporation; and any other person having the authority to bind the assets of the business.
Form 994 Contractor Application for Surety Bond Guarantee Assistance - this form asks specific questions about the contractor's business size, type, ability to obtain surety bonds, minority status, and relationship to the SBA.
What is the maximum contract size that can be considered for SBA's Surety Bond Guarantee?
Do I have to be an 8(a) contractor or Certified Small Disadvantaged Business (SDB) to participate?
Can I get an SBA Surety Bond Guarantee even though I'm not a U.S. citizen?
Yes, you can receive a SBA guarantee even if you are not an U.S. citizen. Nevertheless, you must be a legal alien bearing a registration card, which entitles you to work in the United States. Illegal aliens are not eligible.
How much does it cost to obtain an SBA Surety Bond Guarantee?
Does the SBA charge the contractor for the bid bond as well as final bond guarantees?
How long does it take for the SBA to process an application?
How long can I participate in the program?
What types of businesses are eligible to participate in the program?
How do I obtain an SBA Surety Bond Guarantee?
Does the SBA require any special forms?
What is the maximum contract size that can be considered for SBA's Surety Bond Guarantee?
Do I have to be an 8(a) contractor or Certified Small Disadvantaged Business (SDB) to participate?
Can I get an SBA Surety Bond Guarantee even though I'm not a U.S. citizen?
How much does it cost to obtain an SBA Surety Bond Guarantee?
Does the SBA charge the contractor for the bid bond as well as final bond guarantees?
How long does it take for the SBA to process an application?
How long can I participate in the program?
Does the SBA issue bonds?
No, SBA does not issue bonds. However, SBA does provide a guarantee for bid, performance, and payment bonds issued by participating Surety Companies.
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Generally, all *small businesses in the construction, manufacturing and service industries, whether they are sole-proprietorships, partnerships, or corporations are eligible to participate in SBA's surety bond guarantee, provided the business has attempted and failed to obtain the required bond(s) in the standard surety market.
*(subject to certain size standards - click here for more information on program eligibility http://www.sba.gov/aboutsba/sbaprograms/osg/ourprogram/index.html)
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SBA's contractual relationship as it pertains to the guarantee, is directly with the Surety Company or its agent. It is the Surety who issues the bond to a small contractor. Therefore, a small contractor must first find an agent or Surety Company. Surety Bond Associates is a preferred agent participating in the SBA Surety Bond Guarantee Program.
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Yes, in addition to the standard underwriting forms required by a Surety Company, the SBA also requires the contractor to complete the following:
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Individual contracts of $2,000,000 or less are eligible for SBA's Surety Bond Guarantee. There is no limit to the number of bonds that can be guaranteed for any one contractor.
No, you do not have to be a participant in either 8(a) or SDB programs in order to participate in SBA's Surety Bond Guarantee programs.
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The SBA charges contractors a processing fee of .729% of the contract price on all bonds requiring a guarantee, except bids bonds. This fee is in addition to any amounts charged by the Surety Company, which can range between 1% to 3% of the contract price. The processing fee is required when the application is submitted, and is refunded in the event the bond is not issued or is returned for cancellation.
SBA does not charge a contractor for bid bond guarantees. The contractor's fee applies to a final bond guarantee only. The Surety Company may charge a service fee for issuing bid bonds.
Generally, it takes only three to five days to process a properly completed application for a SBA guarantee.
There is no limit on the length of time that a contractor may participate In SBA's Surety Bond Guarantee program; however, the goal is to help contractors to obtain bonds without SBA assistance.
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