If your firm struggles to secure bonds through standard underwriting due to limited credit history, early-stage financials, or rapid business growth, the SBA Surety Bond Guarantee Program is specifically designed to help.
Under this program, the Small Business Administration guarantees 80% to 90% of surety losses if a bonded contractor defaults. This guarantee enables participating sureties to bond contractors they might otherwise decline, opening competitive doors to projects that would otherwise be out of reach.
The surety submits the contractor’s application to the SBA for review before issuing the bond. Best for contractors with limited financials but a strong project opportunity. Turnaround: usually 3–10 business days.
Selected sureties issue bonds under the SBA guarantee without prior SBA approval, significantly faster than the Prior Approval track. We work with sureties participating in the PSB track for eligible applicants.
As a construction professional or contractor, your work exposes you to a myriad of risks and liabilities on a daily basis.
Bonding capacity is a critical factor for contractors, project managers, and construction firms. It determines the amount of work a contractor can take on and ensures financial stability in project completion.
Bonding capacity is a critical factor for contractors, project managers, and construction firms. It determines the amount of work a contractor can take on and ensures financial stability in project completion.
The SBA guarantees 80%–90% of surety losses to help small contractors access bonding they might not otherwise qualify for. It covers bid, performance, and payment bonds on projects up to $9M ($14M on certified federal contracts).
No. You apply through an SBA-authorized surety agent, such as Ai Surety Bonding USA. We submit your package through the Prior Approval or Preferred track, depending on your situation.
A small SBA guarantee fee is added to the standard surety premium. However, the total cost is often comparable to or lower than specialty-market pricing for contractors who cannot qualify under standard underwriting.
For established clients, same-day issuance is standard. New clients should allow 24–72 hours for initial prequalification.
