SBA Bond Program

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 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 

Bond Packages