Surety Bonds

Small Business Administration (SBA)

http://www.sba.gov/recovery/index.html 

$15 million

N/A

Small businesses

Expands SBA’s surety bond guarantee program; temporarily increases guarantee limit from $2 million to $5 million for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. There is no limit to the number of bonds that can be guaranteed for any one contractor. SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby provides greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract.

To remain available until expended; SBA has begun to approve surety bonds as of 4/3/09

Not later than 180 days after enactment, the Small Business Administrator shall submit to Congress a report on the results of a study that includes an assessment of whether the program’s current funding framework and program fees are inhibiting the program’s growth and an assessment of whether surety companies and small business concerns could benefit from an alternative funding structure.

N/A

www.recovery.ny.gov 

N/A