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SBA Recognizes South Jersey Surety Bond Agency

SBA Increases Bond Guarantees to 90 Percent
Release Date: 
Wednesday, February 1, 2017

WASHINGTON – KOG International Inc., a surety agency based in West Berlin, NJ, was recognized by the U.S. Small Business Administration’s (SBA) Office of Surety Guarantees as the SBA’s Surety Agency of the Year for their ongoing commitment to helping small contracting businesses with their surety bond needs.

SBA New Jersey District Director Al Titone said, “Surety companies, like KOG International, Inc., play a vital role in helping small contractors secure bonds through the SBA Surety Bond Guarantee Program.  This program was developed to provide small, minority and disadvantaged contractors access to surety bonds (bid, payment, performance and maintenance).  These bonds are necessary in order for small contractors to secure contracts.”

KOG International, Inc. is the largest agent in the Northeast region for the SBA program.  In addition to their West Berlin office, the company has offices in Delaware, and Central and Eastern Pennsylvania.  Bruce Allen, who founded the company in 1990, was joined by his associates Greg Allen and Kenneth Turner at the ceremony held at SBA’s Headquarters in Washington, D.C. where they received their award.

“We have a strong presence in the tri-state marketplace and are dedicated to helping small contractors to obtain a bond that ultimately will help them receive a contract,” said Allen.  “With access to over 20 surety markets KOG is able to match a small contractor’s needs with one of our sureties.  Basically, we are able to provide services that other regional brokers cannot match.”

According to Titone, the SBA recently increased its guarantee percentage for bonds issued in the Preferred Surety Bond Program from 70 percent to no more than 90 percent, per Public Law 114-92 of the National Defense Authorization Act of 2016.

“SBA guarantees will be 90 percent if the original contract is $100,000 or less, or if the bond is issued on behalf of a small business owned and controlled by socially or economically disadvantaged individuals, veterans, service disabled veterans, or qualified HUBZone and 8(a) businesses,” explained Titone.  “In all other instances, the guarantee will be 80 percent. The new guarantee limits will expand bonding opportunities for many small businesses in New Jersey and across the country.”

The increase became effective on Nov. 25, 2016.  For more information about SBA’s Surety Bond Guarantee Program, visit https://www.sba.gov/surety-bonds.