SBA PROGRAM for surety bonds

It seems lately that surety bonding information has been hard to come by. Besides higher rates as well as sureties deciding to stop writing certain bonds and there really hasn't been any exciting news until now.

The SBA is going to bring relief to contractors by expanding their bonding programs. As of now the SBA will offer higher capacity for payment and performance bonds. With the cost of materials and building the lower bond amounts where becoming restrictive. Surety Companies have been weary of writing bonds for contractors above the two million dollar mark. Individual contracts of $5 million or less are eligible for SBA's bond Guarantee PROGRAM now.

What is the SBA and how can I join?

The SBA stands for Small Business Association; it was founded in 1953 as an independent agency. Their goal is to assist and help small business to grow and build businesses. The SBA does not issue the bonds but the guarantee bid bonds as well as the payment and performance bonds for surety companies that participate in the PROGRAM. underwriting normally takes 5 to 10 business days. To benefit from their programs you must find a surety bonding company that is currently participating in the SBA.

In recent years contractors have had some hard times. Surety companies have been curving their appetite for performance bonds and banks have not been willing to extend credit. Contractors are needing to seek new avenues to stay afloat. With the SBA surety bond PROGRAM this should bring dramatic relief.