A surety bond is a document signed by the contractor and the surety company that assures the project owner the contract will be completed.
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.
Explore these links to learn more about surety bonds, why you may need a surety bond and how SBA can help you obtain one.