Federal & Healthcare
SNAP Retailer Bond
A SNAP retailer bond (formerly a food stamp bond) is a collateral bond the USDA requires from a store that was sanctioned for SNAP violations before it can accept SNAP benefits again.
- Required by
- USDA Food and Nutrition Service
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond is payable to the USDA Food and Nutrition Service. It promises the store will not accept and redeem SNAP benefits in violation of the rules. If FNS finds new violations, it can forfeit an amount equal to the benefits redeemed in violation.
Who needs it
- Stores returning to SNAP after a disqualification of more than six months
- Stores that paid a civil money penalty in lieu of disqualification
- Previously sanctioned stores that receive a new sanction
What the underwriter looks at
- Store's average monthly SNAP redemptions
- Violation history
- Owners' credit
- Collateral available
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond?
The greater of $1,000 or 10 percent of the store's average monthly SNAP redemptions for the 12 months before the most recent sanction.
How long must it stay in force?
Five years from when the store re-enters the program.
Can I use a letter of credit instead?
Yes. FNS accepts an irrevocable letter of credit from a commercial bank in place of the bond.