Washington – Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA), has announced significant changes to the Surety Bond Guarantee Program (SBG) that are set to benefit small businesses across the country. The SBA will now be increasing the statutory contract limits for the program, allowing for greater revenue opportunities and supporting job creation and economic growth.
Effective March 18, the SBA will begin guaranteeing bid, performance, payment, and ancillary bonds up to $9 million for all projects and up to $14 million on federal contracts – a notable increase from the previous limits of $6.5 million and $10 million, respectively. Administrator Guzman emphasized the importance of surety bonds for small businesses, stating, “Surety bonds help small businesses win contracts by providing the customer with a government-backed guarantee that the work will be done.”
Katie Frost, the Associate Administrator for the Office of Capital Access, highlighted the timeliness of the increase in the Surety Bond Guarantee Program, noting that it aligns with President Biden’s Investing in America agenda which aims to create economic opportunities for small businesses. Frost stated, “President Biden’s Investing in America agenda is creating economic opportunities for small businesses, and surety bonds are an important component of accomplishing that work.”
The SBA plays a crucial role in supporting small businesses by guaranteeing various types of bonds issued by participating surety companies. In addition to the increased contract bond guarantees, the SBA also offers a simplified bond guarantee application under its QuickApp, catering to contracts up to $500,000 with minimal paperwork and quick approvals.
For more information about the program, individuals are encouraged to visit the program website at www.sba.gov/osg or contact Rebecca Galanti at Rebecca.Galanti@sba.gov.
The U.S. Small Business Administration serves as a vital resource for small businesses, providing support and resources needed for entrepreneurs to start, grow, expand, or recover from disasters. With an extensive network of SBA field offices and partnerships with public and private organizations, the SBA continues to empower small business owners across the nation.
