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Small Business Administration
Office of Surety Guarantees
409 Third Street S.W.
Suite 8600
Washington, D.C. 20416
Phone: (202) 205-6540
TTY/TTD: 800-877-8339
WEBSITE: https://www.sba.gov/surety-bonds
Pam Swilling
Customer Relations
(202) 205-6546
Serving Businesses in:
Alabama
Connecticut
Delaware
District of Columbia
Kentucky
Maine
Maryland
Massachusetts
Mississippi
New Hampshire
New York
Rhode Island
Tennessee
Vermont
Virginia
West Virginia
Jennifer I. Vigil
Area Office Director
721 19th Street, Suite 426
Denver, CO 80202
(303) 927-3489
Serving Businesses in:
Colorado
Illinois
Indiana
Iowa
Kansas
Michigan
Minnesota
Missouri
Montana
Nebraska
New Jersey
North Dakota
Ohio
Pennsylvania
South Dakota
Utah
Wisconsin
Wyoming
Puerto Rico
Virgin Islands
Catharine Powers
Acting Area Office Director
2401 4th Avenue, Suite 450
Seattle, WA 98121
(206) 553-8541
Serving Businesses in:
Alaska
Arkansas
Arizona
California
Florida
Georgia
Hawaii
Idaho
Louisiana
Nevada
New Mexico
North Carolina
Oklahoma
Oregon
South Carolina
Texas
Washington
Guam
Surety Bonds: Explained
Contractors obtain surety bonds from surety companies or agents representing surety companies. Most public construction contracts and many private contracts require one, so if you’re a construction or service contractor bidding on a project, you’ll probably need a surety bond.
SBA guarantees bid, performance and payment bonds issued by surety companies. This Federal guarantee encourages surety companies to bond small businesses who are having difficulty obtaining bonding on their own.
Surety Bonds: The Basics:
What is a Surety Bond?
A surety bond ensures contract completion in the event of contractor default. A project owner (called an obligee) seeks a contractor (called a principal) to fulfill a contract. The contractor obtains a surety bond from a surety company. If the contractor defaults, the surety company is obligated to find another contractor to complete the contract or compensate the project owner for the financial loss incurred.
There are four types of surety bonds:
When do I need a surety bond?
Any Federal construction contract valued at $150,000 or more requires a surety bond when bidding or as a condition of contract award. Most state and municipal governments as well as private entities have similar requirements. Many service contracts, and occasionally supply contracts, also require surety bonds.
What is SBA’s role?
The mission of the Office of Surety Guarantees is to provide and manage surety bond guarantees for qualified small and emerging businesses, in direct partnership with surety companies.
SBA helps small contractors by guaranteeing bid, performance, and payment bonds issued by participating surety companies for contracts up to $6.5 million. SBA can guarantee a bond for a contract up to $10 million if a Federal contracting officer certifies that SBA's guarantee is necessary for the small business to obtain bonding.
Are there fees for SBA bond guarantees?
SBA charges the small business 0.729% of the contract price for a payment or performance bond. There is no charge for a bid bond. SBA charges the surety company 26% of the fee the surety company charges the small business.
Prior Approval Program
In this program, all bond guarantee applications are submitted to SBA for prior review and approval. SBA guarantees 90 percent of the losses incurred on 1) contracts up to $100,000, and 2) on contracts awarded to the following types of businesses:
SBA offers an 80% guarantee on bonds for all other individual contracts up to $6.5 million in value or up to the $10 million if a Federal Contracting Officer certifies that SBA’s guarantee is necessary for the small business to obtain bonding.
Quick Bond Application for Prior Approval Program
The Quick Bond Guarantee Application and Agreement is for contracts valued at $250,000 or less, and combines the contractor application and SBA’s agreement with the surety to guarantee the bond into one easy-to-use form. The form, the Quick Bond Guarantee Application and Agreement (SBA Form 990A), is available here.
This streamlined application significantly reduces paperwork for both contractors and surety companies participating in SBA's Prior Approval Program and reduces processing time.
Learn more about how contractors can apply to the Prior Approval Program.
Preferred Program
The Preferred Program enables sureties to issue, monitor, and service bonds without prior approval by SBA. The guarantee rate is 70%.
Please note that SBA does not directly bond a contractor. Instead, SBA guarantees bonds issued by a surety company in order to encourage the surety company to provide bonds to small businesses. Find out how contractors can apply to the Preferred Program.
For more information about either the Prior Approval or Preferred program, please contact SBA’s Office of Surety Guarantees in Washington, D.C. at (202) 205-6540.
Participating Prior Approval Surety Companies
AA Plus Bonding Services LLC
860-470-3344
Accredited Surety Agency LLC
610-849-0772
Acrisure, LLC dba Smith Manus
502-238-1228
Agents of Insurance
605-348-7788
Alamo Surety Bonds
210-930-5550
Allstar Surety Company, Inc.
303-694-4404
Alter Surety Group, Inc.
305-517-3798
American Surety Bonds Agency, LLC
404-486-2355
Anglo-Puerto Rican Insurance Corporation
787-474-4900
Assurance Brokers, LTD
618-692-9800
Atlantic Underwriting Agency, Inc.
610-397-0570
BB&T Boyle Vaughan Insurance
803-231-6182
BDH Associates, Inc.
770-564-2999
Baldwin-Cox Agency, LLC
972-331-3725
Barbour Group, LLC
410-876-9610
BaySide Surety Brokerage, Inc.
251-661-0745
Boley-Featherston-Huffman & Deal Company
800-234-1167
Bond Pro Services LLC
314-863-5535
Bond Specialist Insurance dba Marcia Smith Surety Insurance
760-564-1551
BondPro, Inc.
918-337-4100
Bonding & Insurance Solutions, LLC
816-944-2233
Bonds Southeast, Inc.
615-321-9700
Bowen, Miclette & Britt of Florida, Inc.
407-647-1616
Box Bonding Agency, LLC
817-865-1515
Brown & Brown of Pennsylvania, LP
484-567-0150
Brunswick Companies
330-864-8800
CB Insurance, LLC
719-477-4278
CCI Surety, Inc.
813-443-2174
CCI Surety, Inc.
602-396-7533
CCI Surety, Inc.
866-317-3294
CHS Insurance Services, LLC
800-548-1494
CJS Bonds, LLC
720-236-8245
Calwest Surety & Insurance Services, Inc.
714-784-0053
Canaan Insurance Agency
818-599-7555
Capital Insurance and Bonding Services
540-521-2128
Capstone Brokerage, Inc.
702-227-5727
Cecil W. Powell & Company
904-353-3181
Centaur Insurance Services
516-792-3944
Centennial Surety Associates, Inc.
410-888-9110
Certified Insurance Services
435-586-2211
Charles L . Crane Agency
314-206-4118
Cobb, Strecker, Dunphy and Zimmerman, Inc.
801-537-7467
Commercial Surety Bond Agency
714-516-9563
Commercial West Insurance Agency
505-255-9577
Community Insurance Center, a division of Agency: Inner-City Underwriting Agency Inc.
312-341-9080 x203
Construction Bonds, Inc.
703-934-1000
Contractors Best Insurance Services, Inc.
818-340-4900
Contractors Bonding of the South, LLC
770-476-9062
Creative Insurance Concepts, Inc. dba Creative Bonding & Insurance Solutions (CA)
804-674-8330
Dealey, Renton & Associates
714-824-3902
Dean Insurance Agency
801-763-1313
Delmarva Surety Associates, Inc.
410-561-3593
Direct Insurance Services, Inc.
435-628-9228
Dixie Leavitt Ageny
435-238-7613
East Coast Surety Solutions, LLC
757-513-4247
Eastern Insurance Group, LLC
800-333-7234
Eils & Associates Insurance Group; dba: EA Insurance
913-486-7319
Engle-Hambright & Davies, Inc.
717-394-5681
FSB Agency, Inc.
954-323-3587
Fisher Brown Bottrell Insurance Company
850-432-7474
Florida Surety Bonds, Inc.
888-786-2663
Freedom Bonding, Inc.
410-922-2221
Gibson Insurance Agency, Inc.
574-245-3592
Guignard Company
407-834-0022
HMS Insurance Associates, Inc.
410-337-9755
HUB International
915-206-6055
Harris Madden Powell Stallings & Brown, Inc.
901-853-5300
Heacock Insurance
863-385-5171
Holmes Murphy & Associates, Inc.
214-265-6326
Hub International Insurance Services
310-568-7632
Hub International Insurance Services
303-893-0300
Huntington Insurance, Inc.
614-899-8508
IFB INsurance Services, LLC
718-413-7352
IMA, Inc.
316-267-9221
InfiniTeam Insurance, Inc.
801-619-6288
Inland Insurance Inc.
509-456-2648
Integrated Insurance Solutions, Inc.
801-487-3000
Integrity Surety, LLC
800-592-8662
217-877-3344
J.M. Wilson Corporation
866-881-8318
JAZ Bond & Insurance Services, Inc.
818-998-9529
James A. Scott & Son dba Scott Insurance
804-545-2200
James P. Reagan Agency, Inc
315-673-5334
John Hackney Agency of Rocky Mount, Inc.
252-442-3186
KOG International, Inc.
610-399-4080
Keystone Bonding & Surety Agency LLC
570-473-2712
Leavitt Insurance & Central Bond Services, Inc.
801-798-7343
Lesron Insurance Agency, Inc
916-481-8108
M & T Insurance Agency Inc.
856-985-2087
Mapes Insurance Agency, Inc.
616-453-8600
Marsh & McLennan Agency
914-397-1600
Marsh & McLennan Agency
757-491-1100
Mayfair Insurance Agency dba Oakland Insurance Agency Inc.
248-647-2500
McGriff, Seibels & Williams, Inc.
205-581-9208
Meybohm Scarborough Insurance LLC dba MAI Risk Advisor
706-722-8338
Moore Surety Bonds Agency
317-966-0544
Mullis Newby Hurst LP
972-201-0134
National Surety Services, Inc.
770-394-9444
Newton Surety Services, LLC dba: Newton Bonding
651-342-1480
Nielson, Hoover and Company
407-330-3990
Omaha Business Insurance Solutions
402-884-5797
PCL Insurance Agency, Inc.
972-459-4749
Patriot Risk & Insurance Service
949-486-7917
PayneWest Insurance, Inc.
406-556-4619
Performance Bonding Surety & Insurance Brokerage LP
714-338-3942
Pinnacle Surety & Insurance Services, Inc.
714-546-5100
Pippel Insurance Agency, INC
907-745-3261
Pope & Young Bonding & Insurance Services, Inc.
559-323-8091
Preferred Bonding Services
323-663-7814
Price and Price Enterprises Inc.
516-295-6081
R.T. Thomas & Co., Inc. DBA Bond Pro Insurance Brokers
636-220-6377
Reed Surety & Insurance Services, Inc.
714-389-6797
Robert E. Miller Insurance Agency
816-333-3000
Roger Bouchard Insurance
727-447-6481
Rudnik Surety, Inc.
763-786-9666
Sandra Kay James
818-577-3282
Shorewest Surety Services, Inc.
262-884-6590
Sierra Surety Insurance Service
916-765-9474
Southwest Bond Services, Inc.
623-974-6453
Surety Bond Associates
610-617-1052
Surety Bond Girls, LLC
678-694-1967
Surety Bond Professionals, Inc.
781-559-0568
Surety Bonds & Insurance Agency, Inc. DBA D&M Surety
419-350-2221
Surety One, Inc.
800-373-2804
Surety Placement Services, LLC
480-419-2456
Surety Solutions Insurance Services
916-737-5723
Surety Support Services Inc
866-385-7760
The Bond Exchange and Insurance Agency
949-461-7000
The Bond Exchange, Inc.
704-366-6847
The Bond Exchange, Inc.
501-224-8895
The Fedeli Group
216-643-6987
The Financial Center, Inc.
901-334-1283
The Mahoney Group
702-997-6292
The Stoll Agency, Inc.
215-822-2427
Thomas Sauer Bond Agency
866-288-3856
Tonry Insurance Group
617-773-9200
Truss, LLC
913-643-4177
Turner Surety and Insurance Brokerage, Inc.
714-955-4032
USI Southwest, Inc.
512-651-4172
Unique Surety and Insurance Services, LLC
561-429-3600 x1001
Valenti Trobec Chandler Inc.
248-888-5486
Valley Surety Insurance Agency
916-567-6676
Viking Bond Service, Inc.
623-518-2982
Wells Fargo Insurance Services USA, Inc.
303-863-6503
To be eligible for a surety bond guarantee:
How to Apply for a Surety Bond
Prior Approval Program: If the surety company requires an SBA guarantee as a condition of issuing the bond, you can submit applications by paper or online through the E-App system. The SBA forms listed below must be printed and signed even if you are applying online.
About the E-App System
The online surety bond application system, or E-App, will automatically prompt you to print, sign and mail the required forms to your surety company or agent. Follow the steps below to use E-App.
For more information on how to apply online, view the contractor’s user’s manual or application training tutorial. You can also call SBA’s Office of Surety Guarantees in Washington, D.C. at (202) 205-6540 or 800-877-8339.
Preferred Program
Follow the steps below to apply for the Preferred Program.
For Surety Companies and Agents
Prior Approval surety companies must comply with all requirements contained in 13 CFR Part 115, Subparts A and B. Preferred surety companies must comply with all requirements contained in 13 CFR Part 115, Subparts A and C.
Among other requirements, a surety company must: (1) be a corporation approved by the U.S. Department of the Treasury to issue bonds in connection with Federal contracts (13 CFR 115.11); (2) not sell or transfer its files or accounts unless it has obtained SBA’s prior, written approval [this provision does not apply to the sale of an entire business division, subsidiary or operation of the surety (13 CFR 115.12(f))]; (3) the Surety must agree to use standards generally accepted by the surety industry in underwriting bond applications [these standards must be used on both SBA and non-SBA guaranteed bonds (13 CFR 115.15(a))]; and (4) not charge a bond premium in excess of that authorized by the applicable State insurance department, nor impose any non-premium fee unless such a fee is permitted by applicable State law and approved by SBA (13 CFR 115.32(a) and 13 CFR 115.60(a)(2)).
Additional requirements for Preferred Surety companies include, among others: (1) the Surety must have an underwriting limitation of at least $2 million, as cited on the U.S. Treasury Department list of acceptable surety companies (13 CFR 115.60(a)(1)); (2) the Surety may have premium income from contract bonds guaranteed by any government agency (Federal, state or local) of no more than one quarter of the total contract bond premium income of the Surety (13 CFR 115.60(a)(3)); (3) the vesting of underwriting authority for SBA guaranteed bonds is limited to employees of the Surety (13 CFR 115.60(4)); and (4) the vesting of final settlement authority for claims and recovery under the program is limited to employees of the Surety’s permanent claims department. (13 CFR 115.60(5))
Application Requirements and Procedures to Become a Participating Surety
Applications for SBA’s Surety Bond Guarantee Program must include the following information:
Please submit all application information to the following address:
Small Business Administration
Office of Surety Guarantees
Attn: Ms. Tesha Williams
409 Third Street S.W.
Suite 8600
Washington, D.C. 20416
How Prior Approval Surety Companies and Agents Submit Bond Guarantee Applications through the E-App System
Prior Approval sureties or their agents can submit applications electronically through the E-App System by following the steps below:
Please send confirmation letters to the following address:
Small Business Administration
Office of Surety Guarantees
409 Third Street S.W.
Suite 8600
Washington, D.C. 20416
After we receive confirmation, we will send you an Electronic Data Certification, which must be signed, notarized and returned to the address above.
Required Surety Forms for Prior Approval Program
In addition to the required contractor forms, the following Prior Approval Surety Company forms are required:
Surety Bond Guarantee Program – SOP 50 45 3
Download and read the SOP 50 45 3 to learn more about how to apply for SBA bond guarantees. The guide is customized for surety agents.
Agent User’s Manual for E-App
Download and read the Agent’s User’s Manual to learn more about the E-App system, which enables surety agents to enter surety bond guarantee applications, complete required forms and forward information to SBA.
How Preferred Sureties Submit Bond Guarantee Applications
In the Preferred Program, prior SBA approval of bond guarantees is not required. Preferred sureties, however, must notify SBA electronically of all bonds issued. For all final bonds, Preferred Program sureties report and submit to SBA all contractor and surety fees due via a monthly invoice.
Required Forms for the Preferred Program Only
Additional Help
For more information, contact SBA’s Office of Surety Guarantees in Washington, D.C. at (202) 205-6540 or 800-877-8339.
Bond Guarantee Forms for the Prior Approval Program are listed below.
Small Business Forms
Surety/Agent Forms
Additional Surety Forms
Bond Guarantee Forms for the Preferred Program
Frequently Asked Questions
A surety bond is a written agreement between a Surety Company and the Contractor, or Principal that helps protect the project owner, or Obligee, in the event the Contractor fails to successfully perform the contract. If the Contractor fails to perform, the Surety Company assists the Obligee in completing the contract.
All Federal construction contracts greater than $150,000 require a surety bond as a condition of contract award. Very often, the Contractor must provide a “bid” bond in order to bid on a Federal contract. The bid bond tells the Project Owner that if the contract is awarded to the contractor, the contractor will be able to obtain a “performance” bond. So, there are generally two types of bonds, a bid bond when submitting a bid on a project, and a performance/payment, or final bond, that is required for contract award.
Any business, large or small, must apply for a bond with a Surety Company or an agent that is authorized to represent the Surety Company. The business is then evaluated as part of an underwriting process that assesses such business attributes as character, capability and capacity. The purpose of underwriting is to gauge the likelihood that the contractor will successfully perform the contract.
View a list of Surety Companies, or search the SBA Surety Bond Guarantee System to find Agents empowered to represent participating surety companies.
During the underwriting process, a Surety Company or an Agent may find that the small business presents a degree of risk beyond that which the Company or Agent is willing to assume without the SBA Guarantee. For example, a small business may have limited working capital or lack evidence of prior, successful contract performance that causes concern. Under the Surety Bond Guarantee Program, SBA guarantees between 70 and 90% of the losses and expenses incurred by the Surety Company should the small business default and fail to complete the contract. This Government guarantee encourages the Surety Company to issue a bond that it would otherwise not issue to a small business.
The underwriting process assesses the contractor’s capability and capacity to perform the contract, as well as the contractor’s character. The purpose of underwriting is to determine whether there is a reasonable expectation that the contractor can successfully complete the contract.
Among other areas addressed during the underwriting process with a Surety Company or Agent are the following:
The Surety Company or Agent may decline to issue a bond without an SBA guarantee. If, however, the Surety Company applies to SBA for the bond guarantee, completion of the following forms is necessary:
No. SBA does not issue bonds. SBA guarantees bonds issued by participating surety companies.
Generally, all small businesses, whether they are sole proprietorships, partnerships, or corporations, are eligible to participate.
Individual public and private contracts and subcontracts of $6.5 million or less are eligible. SBA can guarantee a bond for a contract up to $10 million if a Federal contracting officer certifies that SBA’s guarantee is necessary for the small business to obtain bonding. There is no limit to the number of bonds that can be guaranteed for any one contractor.
SBA does not designate a particular agent or surety company for a small contractor. The small contractor is free to change agents or sureties.
The application is handled by the SBA Area Office that services the State where your business is located. Only applications in the Prior Approval Program must be reviewed and approved by SBA.
No. You do not have to be a participant in 8(a) to participate in the Program.
Yes, but you must be a legal alien bearing a registration card that entitles you to work in the United States.
Yes. If a contractor is unable to obtain a bond on reasonable terms and conditions, an SBA guarantee may be provided. Please note, a contractor must not obtain some bonded work without an SBA guarantee and other work with the SBA guarantee. All bonded work must be SBA guaranteed.
All final bond (Payment/Performance) applications require you to pay a fee amounting to .729% of the contract price. If for some reason the bond is cancelled or not issued, the guarantee fee will be returned. SBA does not charge a contractor for bid bond guarantees.
Generally, it takes only three to five days to process an application.
Since SBA’s contractual relationship is with the surety, SBA does not interact directly with contractors. You must contact your agent or surety to find out the status of your application.
There is no limit on the length of time a contractor may participate, but the goal is to help contractors become bondable without SBA assistance.
Yes. You are free to choose from either program in order to obtain an SBA guarantee.
UPDATED: 8.2018
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