Description
The U.S. Small Business Administration’s Surety Bond Guarantee program has helped small and emerging contractors who lack experience and financial strength to obtain bonds through regular commercial channels. The SBA guarantees bid bonds and payment and performance bonds issued by select surety companies, allowing contractors who otherwise would not meet their minimum standards to obtain bonds.
Old Republic Surety is pleased to partner with the SBA as a “Prior Approval” surety, providing bonds up to $10 million for federal projects and up to $6.5 million for any public or private contract or subcontract project.
- Start-ups & firms in business less than 3 years
- Firms with limited financial resources or job history
- Firms wishing to increase current bond limits
- Firms desiring to replace/reduce collateral
- Subcontractors interested in establishing capacity
- Construction, Service & Supply Firms
- $8 million revenue limit for some services such as landscaping
- $16.5 million limit for most specialty trades
- $39.5 million limit for heavy construction
- Ownership variables, good character & reasonable expectation of completion
- Contractor was unable to obtain bond elsewhere with reasonable terms
The type of financial information required is based on the size and style for the project. For those seeking smaller bonds for certain kinds of projects, the SBA QuickApp program offers easy qualification without providing any financial statements.
Offered By
Availability 50 states + DC
Covered
Not Covered
