Bond Guarantees for Surety Companies Grants

What is the aim of the Bond Guarantees for Surety Companies Grants?

The Bond Guarantees for Surety Companies Grants aims to guarantee surety bonds issued by commercial surety companies for small businesses unable to obtain a bond without an SBA guarantee. The guarantees range between 70 and 90% and cover losses and expenses incurred by a participating surety should the small business default on the contract.

Who are Eligible to Apply for Bond Guarantees for Surety Companies Grants?

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. For State, local, and commercial contracts, a small business is eligible if its average annual revenues do not exceed $6.5 million.

How to Apply for Bond Guarantees for Surety Companies Grants?

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.

Where to Apply for Bond Guarantees for Surety Companies Grants?

Headquarters Office
SBA Executive Secretariat 409 3rd. Street, SW , Washington, District of Columbia 20416
Phone: 1-800-827-5722
Email: SBAExecSec@sba.gov
Web Site Address: http://www.sba.gov/osg

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