SBA SURETY BOND
GUARANTEE PROGRAM (SBG)

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we can help your small business

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:

Limited or No Working Capital

Conservatorship Bonds

Little or No Net Worth

Never Had a Bond Before

Constraints on Aggregate Bond Capacity

New in Business

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.

Gemma Fendler, Senior Surety Specialist

Gemma Fendler

SBA Surety Bond Specialist

sba@acsurety.com
(833) 800-6941

What Size Bond Do You Need?

Quick Application

Quick Bond Up To $500,000

Prior Approval Program

Federal Projects Up To $10,000,000

Commercial Projects Up To $6,500,000

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?

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Can contractors use the SBA’s Surety Bond Guarantee Program to bond a single project?

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Does the SBA Surety Bond Guarantee Program Evaluate Working Capital as Traditional Surety Companies?

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My Company Has A Low Net Worth. Can I Still Obtain Surety Bonds?

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Is My Construction Company Too Large To Consider The SBA Surety Bond Guarantee (SBG) Program?

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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.

Demonstrate Creditworthiness

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.

Eligibility

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.

Pass evaluation

Meet the surety company’s credit, capacity, and character requirements.

SBA’s underwriting tools include:

SBA will count bank line of credit availability towards working capital, something that no surety company does! Further, SBA will consider aggregate bonding program capacity of up to 20x analyzed working capital. The general rule of thumb among standard surety bond companies is 10x analyzed working capital and net worth for subcontractors and 15X analyzed working capital and net worth for general contractors.

SBA will offer bond guarantees for startups! The SBA “Quick App” program allows bonding of single size projects up to $500,000.

SBA will consider companies with negative net worth and only takes into account working capital. SBA does not look at a company’s net worth.

Small businesses and principals are SBA eligible immediately after a judge issues a bankruptcy discharge order. Traditional surety bond company requirements may be different.

SBA will consider open liens for past due taxes and other public debts if the principal has established an installment plan and is current on all payments.

ASK A SURETY PRO

Contact the professionals at Anderson & Catania and let’s get to work.