The SBA Surety Bond Guarantee Program
Upstart and disadvantaged contractors look to the Small Business Administration for bonding assistance, helping them bid on projects that previously seemed out-of-reach. Trust Summit Surety to help you along the way.
Bond Guarantee
The SBA guarantees the bond to the surety, making you much less risky to bond.
Low Fees
The SBA’s fee to the contractor is just 0.6%. Combined with the cost of the bond, contractors can expect to pay 1.9%–3% for their bond all-in.
Not Just Federal
The SBA Bond Guarantee program covers up to $9 million in bonding for non-federal projects in addition to their $14 million in coverage for federal projects.
Having Trouble Getting Bonded?
New and small contractors can often be seen as risky by the big surety houses, even with a lot of industry experience. If you can’t secure the bonding capacity you need, you can’t bid on lucrative federal contracts.
But we all win when the bid process is competitive! So the Small Business Administration has their SBA Surety Bond Guarantee Program, which covers 70–90% of loses on a surety bond if it gets called. This helps small businesses in a variety of classifications get bonded when they wouldn’t otherwise be able to.
How Does Summit Surety Help?
The Summit Surety team has been working with the SBA bond guarantee program for years. We’ll help you make sure the process goes smoothly.
While an SBA guarantee makes you a more attractive applicant, a surety may still not approve you. Trust Summit Surety to find a bonding solution that works for you, the surety, and the SBA.
Types of Businesses Covered
8(a) Business Development Program
Covers small businesses at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged.
Women-Owned Small Business (WOSB)
Qualifying small businesses must be at least 51% owned and controlled by women who are U.S. citizens and have women manage day-to-day operations who also make long-term decisions.
Service-Disabled Veteran-Owned Small Business (SDVOSB)
SDVOSB enhances access to federal contracts for small businesses owned by service-disabled veterans.
HUBZone Certification
Covers small businesses at least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian tribe with its principal office and at least 35% of its employees located in a HUBZone, which are historically underutilized locations in the federal bid process.
All Small Businesses
In addition to these other classifications, any business with under 500 employees can apply for an SBA guarantee bond.
Why Else Should I Seek Certification?
In addition to easing the bonding process, these programs come with a variety of other benefits. Depending on the program, the federal government strives to source 5–10% of public contracts from contractors who meet these qualifications. Some programs also come with coaching and access to other financial assistance programs.
Establishing any small disadvantaged business certifications you qualify for is always worth it.