Date Published: April 4, 2024

Great news for small businesses in the contracting world! The Small Business Administration (SBA) recently increased the limits for its Surety Bond Guarantee Program. This means it’s now easier than ever for small businesses to land those big contracts.

Here’s What’s New:

The recent program enhancements increased the maximum guaranteed bond amount:

  • Up to $9 million for all projects (previously $6.5 million)
  • Up to $14 million for federal contracts (previously $10 million)

This significant increase allows small businesses to compete for a wider range of contracts, fostering growth and propelling them to the next level.

How the SBA Surety Bond Program works

  1. Surety bonds are requested:
    • Some contracts require that the business doing the work be properly bonded.
  2. Surety partners with business
    • Authorized surety companies, Like provide surety bonds to businesses that meet their qualifications.
  3. SBA guarantees
  4. Small businesses benefit
    • Small businesses get SBA-guaranteed surety bonds so they can get to work.

What are Surety Bonds and Why Do They Matter?

Surety bonds act as a financial guarantee that a contractor will complete a project according to the contract. If the contractor fails to deliver, the surety company steps in and pays the project owner for damages or to ensure completion.

For small businesses, obtaining these bonds can be a hurdle, especially for larger projects. Traditional surety companies often require a strong financial history and significant experience. This can limit a small business’s ability to compete for contracts that require substantial bonds.

New SBA Surety Bond Guarantee Limits Open Doors for Small Businesses

The SBA Steps Up for Small Businesses

The SBA’s Surety Bond Guarantee Program helps bridge this gap by offering a guarantee to participating surety companies. This essentially reduces the risk for the surety company, making them more likely to approve bonds for qualified small businesses.

What This Means for You

If you’re a small business owner in the contracting industry, this is an exciting development. Here’s what you can do:

  • Review your upcoming projects: See if any contracts now fall within the new limit range, opening doors you might have considered closed before.
  • Contact, an SBA-approved surety provider: Discuss your project needs and explore how the SBA Surety Bond Guarantee Program can benefit you.

The Bottom Line

The SBA’s increased Surety Bond Guarantee Program limits are a game-changer for small businesses in the contracting industry. With bigger bonds now within reach, you can unlock new opportunities and take your business to new heights.

Don’t forget: While the SBA guarantees part of the risk, surety companies will still assess your creditworthiness, experience, and project details. Be prepared to present a strong case to qualify for a bond. is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, is the premier online provider of surety bonds nationwide since 2003.

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