Bond Program Description

 The SBA Bond Program can help contractors looking to increase their bond program, specifically their single and aggregate bond limit. Some examples include, 

• Using a 20X Working Capital multiple 
• Bank Line of credit is counted towards your Working Capital 
• They can consider Job Growth (over 2X largest job completed)
• Help stretching your backlog and consider more bonds at once.  
• The program is perfect for first time bond users and new companies. 
• More Flexible On Owners Personal Credit

Visit sba.gov for more information. 

Surety Underwriting Factors

• When working with the SBA we have to work with a Surety. The SBA approval goes to the surety not the contractor. It guarantees the surety 70%-90% of any potential loss.  
• SBA will consider bid bonds, payment bonds and performance bonds. 

Things To Consider

• There is an SBA Fee of .6% on top of the Surety bond rate.
  • The SBA fee must be paid before any payment and performance bond can be issued. 
• Must be current on all your taxes or at least have a payment plan with the IRS
• Can’t have a bankruptcy in the last 3 years and any bankruptcy must be discharged. 

Information Needed

• A strong bond package! 
• Contractors Questionnaire 
• Five years of company yearend financials.
  • Ideally prepared by a CPA
  • If not prepared by a CPA, then a Balance Sheet and Income statement on an accrual basis. 
• Current internal company financials. (balance sheet and income statement)
• Work on Hand Schedule 
• Owners Personal Financial Statement 
• Bank statements verifying company cash and bank line of credit. 
• SBA Forms
  • 994 (we will complete for your signature)
  • 912 Statement of Personal History