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SBA BOND PROGRAM

FOR CONTRACTORS

The SBA Bond Guarantee Program is a valuable resource for contractors who may face difficulty getting bonded in the standard market. Here is a brief overview of the requirements for obtaining bonds through the program. Keep in mind that every contractor's situation is unique, so it's important to contact our bond specialist for a comprehensive understanding of the requirements as they relate to your situation and to begin the process.

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Requirements for Eligibility:

  • Good character

  • Reasonable expectation of successful completion

  • U.S. for-profit entity with legal U.S. owners

  • Eligible to do business with the federal government

  • Not involved in bankruptcy - SBA eligible after final discharge

  • Current on taxes and repayment agreements

  • The bond amount cannot exceed the contract amount

  • A bond requirement in bid/contract documents

  • Maintenance terms up to 2 years - no special consideration/longer terms considered if standard/statutory

  • All eligible contracts must be submitted for SBA guarantee

  • No restriction on program participation length

  • Ineligible bond types: bid bonds where the project has bid, substantially or completed projects, stand-alone maintenance, subdivision, mining reclamation, commercial and fidelity bonds

Exclusions:

  • Hazardous waste removal, timber sales, and projects in progress

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SBA QuickApp Requirements for Projects up to $500,000:

  • 2-page application

  • Decisions in hours

  • No financials/WIP

  • No aggregate limit with SBA

  • Surety establishes qualifications

  • Maintenance terms up to 2 years

  • Performance periods up to 1 year

  • LDs up to $1,000/day

  • No previous contract defaults/claims

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Up to $6.5 Million for Any Project:

  • Federal, state, local, private, and GC projects

  • Year-end business financial statements for the last 3 years

  • 6-month interim business financial statement if due

  • Company and affiliate tax returns for the last 5 years if applicable

  • Bank reference letter

  • Personal financial statement

  • WIP schedule

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Up to $10 Million for Federal Contracts:

  • With contracting officer certification to SBA

  • Year-end business financial statements for the last 3 years

  • 6-month interim business financial statement if due

  • Company and affiliate tax returns for the last 5 years if applicable

  • Bank reference letter

  • Personal financial statement

  • WIP schedule

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