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SBA Bond Guarantee Program Fee Decrease
The SBA recently announced the first decrease in fees for the Bond Guarantee Program in 12 years. As of October 1, 2018 any bond approved and acquired for the 2019 fiscal year will accommodate the decreased fee set until September 30th of next year. This new decrease in fees is meant to help small business across the nation and here at Surety Place, we couldn’t be happier to help support the cause. As one of the few selected sureties chosen to participate in the SBA Bond Guarantee Program, we know how important it is for small businesses to be able to acquire bonds for larger projects in order to help their company grow. When it comes to getting a bond, we say yes when no one else can and we stand by the companies that we work with. These new lowered fees will make it even easier for your company to get the bonds you need!
As of October 1st, the fees charged to sureties will be reduced from 26% to 20% of the bond premium. Along with this, the contractor fee, which was originally $7.29 per every thousand dollars of the signed contract, lowering to $6.00 per thousand dollars of the project contact. The SBA Bond Guarantee Program has continued to help small businesses in their fight to expand by guaranteeing projects up to $10 million. The new SBA Bond Guarantee Program fee decrease will also help with the profit margin for small businesses on these larger projects.
What is the SBA Bond Guarantee Program and How do I know if I need it to get a bond?
The SBA (Small Business Administration) created a guarantee program that allows certain surety companies to supply bid, performance, and payment bonds to small businesses. Companies that are just starting out or have a smaller business model, have a harder time meeting the criteria for certain bonds from sureties that are not part of this specialty program because of a lack of equity. The SBA Bond Guarantee Program allows an elite group of surety bond companies to grant bonds to small business owners bidding for bigger jobs (up to $10 million to be exact). These bonds ensure that the work on the project will be completed to the satisfaction of the obligee.
The SBA Bond Guarantee Program is one of the many specialty programs that The Surety Place is part of. This program makes it possible to offer bonds to small businesses like yourself when other sureties turn you down. If you are a small business owner looking to acquire a bid, performance, or payment, contact us today! Our team is dedicated to helping you find the answers you need and get the bonds required to help grow and secure your business. We are also happy to answer any questions you may have about the SBA Bond Guarantee Program Fee decrease. We are proud to be one of the few selected surety companies to be affiliated with the SBA Bond Guarantee Program and know that it sets us apart from other sureties.