WASHINGTON, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s cabinet for America’s more than 33 million small businesses, announced that for the first time since 2013, the SBA is increasing the statutory contract limits for the Surety Bond Guarantee Program (SBG). This regulatory change is expected to increase revenue opportunities through contracting for small businesses, 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 – up from $6.5 million and $10 million, respectively. The SBA is authorized to guarantee bonds on federal contracts over $9 million when accompanied by a federal contracting officer’s signed certification, or when located in a major disaster area.
“Surety bonds help small businesses win contracts by providing the customer with a government-backed guarantee that the work will be done,” said Administrator Guzman. “As the Biden-Harris Administration’s Investing in America agenda continues mobilizing historic levels of investments across the country, the SBA remains committed to helping small businesses compete for and win these contracts.”
“This increase in the Surety Bond Guarantee Program comes at a critical time,” said Katie Frost, the Associate Administrator for the Office of Capital Access. “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 helps small businesses by guaranteeing bid, performance, payment, and maintenance bonds issued by participating surety companies. In addition to these larger contract bond guarantees, the SBA also offers a simplified bond guarantee application under its QuickApp, accommodating contracts up to $500,000 with limited paperwork and approvals within hours. Last December, the SBA announced the 2023 Surety Companies and Agencies Rankings.
For questions regarding the program, please visit the program website at www.sba.gov/osg or contact Rebecca Galanti at Rebecca.Galanti@sba.gov.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
Christine Saah-Nazer U.S. Small Business Administration 202-756-0304 Christine.saahnazer@sba.gov Han Nguyen U.S. Small Business Administration 202-756-0304 han.nguyen@sba.gov Rebecca Galanti U.S. Small Business Administration 202-756-0304 rebecca.galanti@sba.gov
