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The Small Business Administration (SBA) recently announced a milestone change in its Surety Bond Guarantee Program (SBG), marking the first adjustment in statutory contract limits since 2013. Effective March 18, the SBA will now guarantee bid, performance, payment, and ancillary bonds up to $9 million for all projects and up to $14 million on federal contracts. This significant increase in limits is expected to open up new revenue avenues for small businesses, supporting their expansion and contributing to economic growth. Here at The Surety Place, we’re thrilled about this development, as it aligns with our mission to support small businesses in accessing bonds for larger projects. As one of the select sureties participating in the SBA Bond Guarantee Program, we understand the importance of these bonds in facilitating business growth. These increased limits will make it even easier for your company to obtain the bonds it needs.
Effective March 18, 2024, the SBA is raising the statutory contract limits for surety bonds, providing small businesses with expanded financial backing. Here are the key highlights:
Bid, Performance, Payment, and Ancillary Bonds:
This is a significant increase from the previous limits of $6.5 million and $10 million, respectively. Read the full details of the change directly from the sba.gov press release and regulatory memo.
The SBA (Small Business Administration) Bond Guarantee Program provides bid, performance, and payment bonds to small businesses, ensuring they meet project requirements and satisfy obligees. This program, particularly vital for startups and smaller businesses, allows selected surety companies like us to offer bonds for projects up to $14 million, bolstering the confidence of project stakeholders. If you’re a small business owner seeking bid, performance, or payment bonds, reach out to us today. We’re committed to helping you navigate the bonding process and secure the bonds necessary for your business success. This recent change underscores the value of the SBA Bond Guarantee Program in fostering small business growth, and we’re proud to be part of it.
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 limit increase. 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.
You can read our full article with FAQ about the SBA Bond Guarantee Program here.
About The Surety Place: The Surety Place is a national surety and bonding account management group capable of facilitating all bonding needs whether large or small in any of the 50 states. With over 50 years of combined experience, we have been able to create intimate relationships and specialty programs with various A-rated sureties across the nation. The Surety Place has been helping businesses grow since 2002 and our efforts with the SBA will continue to make this possible. We are proud to be recognized by the SBA as a Top Performing Surety Agency for two consecutive years in a row. You can read the original press release here.