SBA Bond Guarantee Program:
SBA provides and manages surety bond guarantees for qualified small and emerging contractors through the Surety Bond Guarantee (SBG) Program. Participating sureties receive guarantees from the SBA which will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract.A Surety Company may find an account presents a degree of risk beyond which the surety company is not willing to assume without the SBA Guarantee. Under the Surety Bond Guarantee Program, the SBA guarantees between 70 and 90% of the losses and expenses incurred by the surety company should the principal default or fail to complete the contract.  The Government guarantee encourages surety companies to issue bond(s) that it would otherwise not be willing to issue.

Eligibility Requirements for Small Business Contractors

To be eligible for a surety bond guarantee:
You must need an SBA guarantee to obtain a bond.
There must be a reasonable expectation of successful contract performance.
The contract must require a bond.
Your business must satisfy credit, capacity and character evaluations completed by the surety company.
The size of the public or private contract or subcontract must not exceed $6.5 million or $10 million, if a Federal contracting officer certifies the SBA’s guarantee is necessary to obtain bonding
Your business must be classified as small. The business combined with its affiliates must not exceed the size standard designated for the primary industry of the business together with its affiliates. Use the Size Standards tool to determine if your business is classified as small.