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SBA Surety Bond Guarantee Program
The Small Business Administration (SBA) Surety Bond Guarantee (SBG) program is a federal program that helps small businesses obtain surety bonds that might otherwise be unavailable to them. The program provides a guarantee to surety companies, which Anderson & Catania partners with the SBA SBG program to help contractors overcome surety bond underwriting obstacles such as:
Anderson & Catania is a nationally authorized agent for the U.S. SBA Surety Bond Guarantee Program - and we can help your small business secure a SBA guaranteed surety bond, and use that approval to grow and secure a bright future.
SBA Surety Bond Specialist
What Size Bond Do You Need?
ASK THE SBA SURETY BOND PRO
Gemma Fendler’s 90 second videos reveal what you need to know about the SBA’s Surety Bond Guarantee Program, aka the SBG.
Does an SBA-guaranteed surety bond replace the need to work with a traditional surety company?
Can contractors use the SBA’s Surety Bond Guarantee Program to bond a single project?
Does the SBA Surety Bond Guarantee Program Evaluate Working Capital as Traditional Surety Companies?
The Benefits Of The SBA SBG Program For Small Businesses
Overall, the SBA SBG program helps small businesses access the surety bond market, enables them to bid on a wider range of projects and provides the ability to demonstrate their creditworthiness.
Increased Access to Surety Bonds
The SBG program helps small businesses obtain surety bonds that would not otherwise be available through the traditional surety bond underwriting process.
Ability to Bid on Larger Projects
With a SBA Surety Bond Guarantee, contractors can leverage SBA-specific underwriting tools to expand bonding capacity.
Diversifying Types of Commercial & Government Projects
The SBA Surety Bond Guarantee can be utilized on many different kind of projects that may require bonds.
Support For Small and Emerging Contractors
The SBG program is particularly beneficial for small, emerging contractors which are working to build a track record of successfully completed projects.
Credit worthiness is of primary importance to surety bond companies as it serves as a reliable indicator of a contractors financial stability and ability to fulfill its financial obligations.
Bond Guarantee Fee
All performance and payment bond guarantees require small businesses to pay the SBA a fee of .6% of the contract price. If for some reason the bond is cancelled or not issued, the SBA will return the guarantee fee. The SBA does not charge a fee for bid bond guarantees. This SBA fee is in addition to the bond premium charged by the underlying surety company.
Be a small business
Qualify as a small business according to the SBA’s size standards.
Have a small contract
Up to $6.5 million for non-federal contracts and up to $10 million for federal contracts.
Meet the surety company’s credit, capacity, and character requirements.
SBA’s underwriting tools include:
ASK A SURETY PRO
Contact the professionals at Anderson & Catania and let’s get to work.