The SBA Bond!

The SBA Bond program may be the answer you need. As your construction company grows and you need more surety bonds, you may find that your current market is not willing to support the bond single and aggregate size you need. The SBA Will work with: 

• New companies 
• Owners that have poor credit 
• Financials that are not strong enough for the standard market

The SBA Bond program can be a great tool for contractors looking for a bond approval because they can consider the following in their underwriting. 

• The SBA will work with 20 Times your working capital where the standard markets will only work off of 10 times. That means with the same numbers you are getting twice the bond program. 
• SBA will count your available bank line of credit as working capital. If you have no working capital but have a fully available bank line, then you could have enough to get your bond approved with the SBAs Bond program. 

When working with the SBA you will need to work with a surety company as well. Once the bond is approved the SBA guarantee goes to the surety not the contractor. It guarantees the surety that in the event of bond claim if the surety can’t recover their losses the SBA will cover anywhere from 70-90% of the loss. 

Call us today as we are a register SBAs Bond agent and can help you get your bond approved.