The Impact of the SBA’s Surety Bond Guarantee Program in 2023

The U.S. Small Business Administration (SBA) has released its 2023 rankings for the most active surety companies and agencies. This announcement highlights the pivotal role of the SBA’s Surety Bond Guarantee (SBG) Program in enabling small businesses to secure over $2.2 billion in contracts, thereby supporting more than 37,000 jobs nationwide.

Jermaine Perry, the director of the Office of Surety Guarantees, remarked on the program’s unprecedented success in fiscal year 2023, stating, “This past fiscal year marks the best-performing year in 25 years for guaranteeing bid and final bonds.” He credited this achievement to the “unwavering dedication of our surety partners and agencies,” whose collaboration with the SBA was crucial in realizing these goals.

The SBG Program, working in tandem with surety companies and their agents, offers guarantees for small businesses on various projects, ranging from federal to local levels. This initiative extends beyond financial support and includes educating the businesses on the bonding process, advising on increasing bond limits, and facilitating connections with other business resources like construction attorneys and CPAs.

Katie Frost, acting associate administrator for the Office of Capital Access, emphasized the program’s impact on local economies, saying, “Our active SBG Program partners help the SBA open doors to bonding for small businesses, creating new jobs, and growing local economies.”

In fiscal 2023, the SBA guaranteed bonds for more than 1,800 small businesses, with a total contract value exceeding $7.3 billion. The top-performing surety company partners and bonding agencies for the year were recognized for their contributions to the program’s success. These partners, including American Contractors Indemnity Company and Merchants Bonding Company, among others, were pivotal in facilitating these contracts.

The SBA’s Office of Surety Guarantees continues to champion small and emerging businesses through its bond guarantee offerings. The program supports bid, performance, and payment bonds for contracts up to $6.5 million and up to $10 million for federal contracts under specific conditions.

For businesses seeking bonding support, the SBA also offers a simplified bond guarantee application through its QuickApp, catering to contracts up to $500,000. This streamlined process promises limited paperwork and quick approvals, often within a day.

As fiscal year 2024 approaches, the SBA, led by figures like Perry and Frost, aims to expand its reach and efficacy. The success of the SBG Program in 2023 serves as a testament to the SBA’s commitment to empowering small businesses, ensuring they remain competitive and robust contributors to the U.S. economy.

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This article, “The Impact of the SBA’s Surety Bond Guarantee Program in 2023” was first published on Small Business Trends