About SBA
Skip to page content

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.

Want more information about surety bonds? Click here.

Related Articles:
Surety Bond Guarantee Application Training for Agents
Surety Bond Guarantee Application Training for Contractors
Related FAQs:
What is a surety bond?

15 votes


Get the Info That Matters Most to You With SBA Direct

Find information on:

(Select your topics)

Get Local Assistance Right in Your Area

Counseling, mentoring, and training from an SBA District Office, SCORE Chapter, Small Biz Development Center or Women’s Biz Center in your area.

FIND RESOURCES

join the community

Most Visited Articles In:

SBA.gov

Skip Most Visited Articles and go to Relevant Media Links

Relevant Media In:

Starting a Business

Skip Relevant Media and go to Success Story Links

SBA Success Story

Skip Success Story and go to Left Sub-Menu Links
Success Story: Hispanic/Latina Woman Owned Business Makes it into Speakers Hall of Fame
Jacksonville, FL --- Pegine Echevarria, Owner and President of Team Pegine, Inc., a SBA-certified 8(a) company, was inducted into the Motivational...
Omaha firm takes advantage of government market with help from SBA and PTAC
  President and CEO Sri Devi (left) and Business Development Director Mike Fisk of Guru Alliance outside their Omaha office.   They'...
H20 + Exporting Ingenuity + the SBA Export Express Program = the Right Chemistry for Small Business Success
In 1996, John Wong, a Cleveland, Ohio based biologist and chemical engineer, founded TLC Products to answer the need for live, non-toxic,...