Did you know that the U.S. Small Business Administration offers guaranteed surety bonds to help small businesses in the construction, supply, and service sectors better compete for contracting and subcontracting jobs?
The OSG has been providing these growth opportunities to small businesses for 50 years. In 1970, the Surety Bond Guarantee (SBG) Program was established by the Housing and Urban Development Act. In its first year of operations, the program guaranteed seven final bonds with a contract value of approximately $315,000. In FY19, the program supported approximately 3,300 final contracts, totaling nearly $1.8 billion.
This month, we are hosting a virtual conference to commemorate the SBG program’s 50th anniversary. We encourage small businesses in the construction, supply, and service sectors, along with members of the surety bond industry, to join us for a free online event Sept. 24-25.
The conference will cover topics ranging from the future of the surety bond industry to the SBA’s role in the industry and tips for small businesses seeking surety bonds. Guest speakers include leaders in the surety bond industry, Marcus Lemonis from CNBC’s television show “The Profit,” and SBA’s Chief of Staff, William Manger.
Consider pursuing SBA-guaranteed surety bonds
Even if you can’t make the conference, we encourage relevant small business owners to learn about the benefits of the SBG program. Surety bonds help small businesses win contracts by providing the customer with a guarantee the work will be completed.
SBA-guaranteed surety bonds are often an ideal option for:
- Startups and firms in business for less than three years
- Small businesses with credit issues or internally prepared financial statements
- Small businesses that have difficulty securing surety bonds through regular commercial channels
- Subcontractors with a desire to establish their bonding credit as a prime contractor
- Small businesses that want to increase their current bonding limits
For eligible contracts under $400,000, the process is streamlined using the SBA’s QuickApp, an easy online application submitted to SBA-authorized agents. Applicants do not need to submit financials to the SBA, and applications are quickly assessed and approved.
Are you interested in surety bonds? Register for our conference here, and learn more about the process here.