Bond Program

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 
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