SBA BONDS

SBA BONDS

American Surety Bonds Agency helps small businesses obtain SBA-backed surety bonds for eligible federal and federally assisted contracts nationwide. Because requirements vary by federal agency, contract, and SBA program guidelines, our underwriting team reviews your contract documents and financial profile before confirming eligibility, bond amount, and next steps.

An SBA surety bond is a bid, performance, or payment bond backed in part by the U.S. Small Business Administration’s Surety Bond Guarantee Program. The SBA doesn’t issue the bond itself: American Surety Bonds Agency places the bond through one of our SBA-authorized surety partners, and the SBA guarantees a portion of that surety’s loss if the contractor doesn’t perform. That guarantee is what lets small businesses without an extensive bonding history qualify for contracts they might not get otherwise.

The program covers contracts up to $9 million, extending to $14 million on federal contracts when the contracting officer certifies it’s necessary.

This bond goes by several names depending on the obligee or the governing program.

• SBA-Backed Bond
• SBA Surety Bond Guarantee
• Federal Surety Bond Guarantee

These all refer to the same bond described on this page. The terminology differs by obligee and program, not by bond function.

This program is built for small businesses bidding on public or federally-assisted contracts who don’t yet have the credit history, working capital, or bonding track record that traditional underwriting requires. An SBA-backed bond may be your path to bonding capacity you couldn’t otherwise obtain if:

• Your business qualifies as small under the SBA’s size standards for your industry (thresholds vary by NAICS code)
• You’re bidding on a contract within the program’s size limits (up to $9 million, or $14 million on certified federal contracts)
• You hold an SBA designation (8(a), HUBZone, Service-Disabled Veteran-Owned/SDVOSB, Veteran-Owned/VOSB, Economically Disadvantaged Women-Owned/EDWOSB, Women-Owned/WOSB, or Small Disadvantaged Business/SDB), which often qualifies you for the program’s highest guarantee levels

Your underwriting team can confirm whether your specific contract qualifies for the SBA guarantee.

These bonds are underwritten individually. Depending on the contract, the underwriter may request:

• A completed SBA bond application
• A copy of the contract or bid specifications
• A job cost breakdown
• Personal and business financial statements
• Information on your total work on hand and prior contract experience

You can apply either way: our Fast Track Application for contracts under $250,000, or the Bond Kit for contracts of any size or scope.

There’s no fee for a bid bond guarantee. Final bonds (performance and payment) carry a 0.6% SBA guarantee fee on the contract price, plus the surety’s own premium, starting as low as 1.5% of the bond amount. That premium varies based on your personal credit history, business and industry experience, and financial statements and bonding history.

Beyond the federal guarantee itself, American Surety Bonds Agency’s SBA program includes benefits built specifically for small and disadvantaged businesses:

• No charge for bid bonds
• No annual setup fees
• No surety controls on your business
• Working capital programs available alongside your bond
• Mentor-protégé arrangements accepted (an established partnership between your business and a more experienced mentor firm under SBA’s Mentor-Protégé Program can support your bond application)
• Backup surety option available
• Licensed in all 50 states, with in-house authority across 40+ surety partners
• Prior bankruptcy considered in most cases; it’s not an automatic disqualifier

These SBA-specific advantages come in addition to our standard bid, performance, and payment bond process.

SBA-backed bonds aren’t limited to construction. We also bond qualifying service contracts, including janitorial, landscaping, security, demolition, hauling, timber cutting, cemetery maintenance, and airport concessions, among others.

Obtaining your bond through American Surety Bonds Agency is simple:

1. Complete the online application: our Fast Track Application for contracts under $250,000, or the Bond Kit for contracts of any size or scope.
2. Our contract bond team reviews your application, including your eligibility for the SBA guarantee, and contacts you if anything else is needed.
3. Review your approval and finalize your bond.
4. Receive your completed bond to submit with your bid or contract award.

American Surety Bonds Agency has been helping small and disadvantaged businesses meet federal bonding requirements for decades. Whether you’re bidding on your first federal contract or scaling into larger government work, our experienced team is here to make the process simple and efficient.

When you choose American Surety Bonds Agency, you’ll receive:

• Experienced surety bond professionals
• Competitive rates from leading surety companies
• Fast underwriting and responsive customer service
• A secure online application process
• Guidance qualifying for 8(a), HUBZone, SDVOSB/VOSB, and other federal small-business designations

Above all, we’re committed to helping you meet your SBA bonding requirement quickly and correctly, with experienced guidance every step of the way.

Bond Basics & Cost

Eligibility & Coverage

For a deeper look at the SBA Surety Bond Guarantee Program, including FY2025 guarantee volume, the federal fiscal-year funding cycle, and how the September 30 deadline affects contractors, read our complete guide: SBA Surety Bond Guarantee Program: What Small Contractors Should Know Before September 30.

Contact American Surety Bonds Agency toll-free at (877) 201-8976 or our Atlanta office at (404) 486-2355. Our team can answer questions about SBA program eligibility and walk you through the application process.