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Surety Bonds

A surety bond is an instrument that is signed by the Principal (or Contractor) and the Surety Company in order to protect the interests of the Obligee (the buyer, or party issuing the contract) in the event the Principal defaults on the contract. A surety bond is acquired by the Principal from the Surety Company for a fee, as a sort of insurance policy to protect the Obligee. If the Principal defaults, the Surety Company steps in to ensure the contract is completed.

  • Surety Bonds: Explained
    A surety bond is a type of insurance that guarantees performance of a contract. If one party does not fulfill its end of the bargain, then the surety bond provides financial compensation to the other party. What is a Surety Bond...
  • Small Business Eligibility Requirements
    Is Your Small Business Eligible for an SBA Surety Bond Guarantee? Several factors are taken into consideration when determining eligibility. To be eligible for a surety bond guarantee: Your business must be classified as...
  • Bond Guarantee Application – Small Businesses
    This article contains important information about the application process for a surety bond guarantee by the SBA. Keep in mind that the SBA does not directly bond a contractor. Instead, SBA guarantees bonds issued by a surety...
  • Bond Guarantee Application– Surety Company/Agent
    There are two SBA Surety Bond Guarantee Programs, the Prior Approval Program and the Preferred Program. In the Prior Approval Program, all bond guarantee applications are submitted to SBA for prior review and approval. SBA gives...
  • Bond Guarantee Fees
    The following charges are in effect for SBA's participation in the bond guarantee program: SBA charges the small business .729% of the contract price for a final bond (payment/performance bond). There is no charge for...
  • Admitting New Surety Companies to the Program
    Any surety company certified by the U.S. Department of the Treasury to issue bonds may apply for participation in the SBA Surety Bond Guarantee Program, which consists of the Preferred Program or the Prior Approval Program....
  • Contractor (Small Business) User’s Manual
    The Surety Bond Guarantee (SBG) Electronic Application (E-app) system is a web application used to apply for SBA bond guarantees. Contractors can use the E-app System to enter SBG applications, completed required SBA forms, and...
  • Agent User’s Manual
    The Surety Bond Guarantee (SBG) Electronic Application (E-app) system is a web application used to apply for SBA bond guarantees.  Agents can use the E-app System to enter SBG applications, completed required SBA forms, and...
  • Prior Approval Surety Companies
    Aegis Security Insurance Company 2407 Park Drive Harrisburg, PA 17105-3153 Contact: Donald Morse, VP of Surety Office: (717) 657-9671 Fax: (717) 657-5837 Email: Dmorse@aegisfirst.com American Safety Casualty Insurance CO 100...
  • Bonding Agencies by State
    For a list of all bond agencies by state, please see the attached files.

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