SBA BOND PROGRAM
FOR CONTRACTORS
The SBG program is a great bonding resource we provide for contractors who may have difficulty getting bonded in a standard market. Below is a brief overview of the requirements needed for obtaining bonds with the SBA. Every contractor's situation is different. For a more comprehensive understanding please contact our bond specialist to understand how the requirements relate to your situation and how to begin the process.
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Good character
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Reasonable expectation of successful completion
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U.S. for-profit entity with legal U.S. owners Eligible to do business with the federal government
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Not involved in bankruptcy - SBA eligible after final discharge
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Current on taxes & repayment agreements
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The bond amount cannot exceed the contract amount
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A bond requirement in bid/contract documents
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Maintenance terms up to 2 years - no special consideration/Longer terms considered if standard/statutory
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All eligible contracts must be submitted for SBA guarantee
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No restriction on program participation length
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Ineligible bond types: bid bonds where the project has bid, substantially or completed projects, stand-alone maintenance, subdivision, mining reclamation, commercial & fidelity bonds
Exclusions:
hazardous waste removal, timber sales, pure demolition & projects in progress
SBA QuickApp requirements for projects up to $400,000
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• 2-page application
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• Decisions in hours
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No financials/ WIP
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No aggregate limit with SBA
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Surety establishes qualifications
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Maintenance terms up to 2 years
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Performance periods up to 1 year
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LDs up to $1,000/day
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No previous contract defaults/ claims
Up to $6.5 Million Any Project
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Any Project Federal, State, Local, Private & GC
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Year-end business financial statements last 3 years
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6-month interim business financial statement if due
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Company and Affiliate tax returns last 5 years if applicable
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Bank reference letter
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Personal financial statement
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WIP schedule
Up to $10 Million Federal Contracts
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With Contracting Officer certification to SBA
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Year-end business financial statements last 3 years
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6-month interim business financial statement if due
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Company and affiliate tax returns last 5 years if applicable
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Bank reference letter
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Personal financial statement
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WIP schedule