Sba guarantee program

Additionally, the SBA imposes the following minimum requirements based on the size of the project:. The SBA charges a fee of 0. If the contractor is deemed eligible, the authorized agent will issue the bond, thus allowing the contractor to participate in the bidding process or begin work on the project should the contractor be awarded the contract.

At BondExchange, we help make this process easier. We will then provide your customer with the SBG Program application form, and help walk you through the bonding process. If an application is approved, the surety company gains the confidence to issue a surety bond.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs. The surety bond agreement for a contract bond guaranteed by the SBA is a legally binding contract among three parties.

In addition to the bond premium, the principal must pay the SBA a small flat fee currently 0. What Is It? Who Qualifies for It? By Nick Newton for AssuredPartners Anyone working in the construction bond industry has seen the scenario where a client or prospect is requesting bonding capacity larger than the standard surety market is willing to provide. SBA will approve bonds up to 20x working capital, provided project is no larger than 2x previous largest. Available balance under a bank line is added to working capital for determining bond size.