Surety Bond Guarantees
Active
- Assistance listing
- 59.016
- Grant awards
- Not on record
Program facts
- Treasury account
-
- 73-4156-0-1-376
- More information
Program details come from SAM.gov Assistance Listings. Updated .
About this program
The Small Business Administration guarantees surety bonds issued by Treasury-listed surety companies for small businesses unable to obtain bonds under reasonable terms without an SBA guarantee under CFDA 59.016, with no hard deadline present in the source material.
The program guarantees surety bonds up to 90 percent, covering direct losses and expenses incurred by SBA-approved participating sureties when small business principals default on contracts. Small businesses pay SBA a fee based on the percentage of the contract price; participating surety companies remit a percentage of premiums charged to small business applicants to the SBA. The program operates through two tracks: a Prior Approval Program in which the SBA reviews and approves bond guarantee applications before surety issuance, and a Preferred Surety Bond (PSB) program in which designated preferred sureties issue SBA-guaranteed bonds without prior SBA approval. The SBA targets completion of bond guarantee application reviews within 4.5 days. Eligibility is limited to surety companies holding Treasury certificates of authority as acceptable sureties for bonds on federal contracts.
The source does not specify the assistance-type characterization, award volume trends, or recent grant award activity for this program. The source does not report recent grant opportunities, open application deadlines, or portfolio concentration data across funding agencies or recent award magnitudes. The program is governed by 13 CFR Part 115 and 13 CFR Part 121. The SBA maintains centralized records on contractors in default or claim status and conducts audits of Prior Approval and PSB sureties at minimum every three years.
Objective and description
- Objective
To guarantee surety bonds issued by Treasury listed surety companies for small businesses unable to obtain a bond under reasonable terms without an SBA guarantee. The guarantees range up to 90% and cover direct losses and expenses incurred by an SBA-
- Description
To guarantee surety bonds issued by Treasury listed surety companies for small businesses unable to obtain a bond under reasonable terms without an SBA guarantee. The guarantees range up to 90% and cover direct losses and expenses incurred by an SBA-approved participating surety should the small business default on the contract.
Eligibility
- Applicant eligibility
Guarantees are limited to those surety companies holding certificates of authority from the Secretary of the Treasury as an acceptable surety for bonds on Federal contracts. Specific criteria apply to the Prior Approval and PSB Sureties.
- Beneficiary eligibility
For most contracts, a small business is eligible for bond guarantees issued by the surety bond program if it qualifies as a small business under Code of Federal Regulations Subpart 121, Size Eligibility Provisions and Standards. To learn more, visit www.sba.gov/size-standards.
- Uses of assistance
Contracts within eligibility parameters outlined under Code of Federal Regulations Subpart 115, Surety Bond Guarantee, where a surety bond is required but not obtainable privately with reasonable terms and conditions. Guarantee is for bid, payment, and performance bonds (and ancillary bonds incidental to the performance of a specific contract). It is provided directly to the surety and/or an authorized agent for a particular contract. Under the Prior Approval program, sureties must apply to SBA for each guarantee. Sureties in the Preferred Bond Program are delegated authority to issue, service, and monitor bonds without prior SBA approval.
- Length and time phasing of assistance
Guarantee runs to termination of bond (usually completion of contract). Method of awarding/releasing assistance: Additional information available on SBA's website at www.sba.gov/osg.
How to apply
- Award procedure
Under the Prior Approval Program, SBA notifies the surety company of SBA's approval of the guarantee and furnishes the surety with e-mail authorization. Surety company (or agent/broker) notifies the bond applicant and issues the bond. Preferred sureties issue bonds guaranteed by SBA without SBA's prior approval. Prior approval and PSB sureties remit a percent of the premium they charge small businesses to SBA. Small businesses pay SBA a fee based on the percentage of the contract price.
- Time to approval or disapproval
The goal for completing the review of a bond guarantee application is 4.5 days.
- Renewals
Additional information available on SBA's website at www.sba.gov.
- Appeals
Additional information available on SBA's website at www.sba.gov.
Quick answers
What is Assistance Listing 59.016?
Assistance Listing 59.016 is Surety Bond Guarantees, a federal grant program run by Small Business Administration.
What is the CFDA number for Surety Bond Guarantees?
Its CFDA number is 59.016: Assistance Listing numbers were called CFDA numbers before 2018.
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