What to Know About Small Business Administration (SBA) Bonds

The Small Business Administration has a bond program that has modified requirements, catered to help small businesses that are having challenges meeting the bond requirements of the standard surety marketplace.

SBA programs are for people/businesses with less than perfect credit. Examples could include a new business, a contractor with a challenged financial history, a change in business or job size, a shortcoming in net worth, or lack of working capital. If traditional standards cannot be met by the principal, these individuals may be able to meet the SBA’s simplified qualifications.

The SBA Bond Programs are exciting opportunities for American Surety Bonds Agency to help with contractors’ financial development, such as better accounting and banking relations. American Surety takes pride in our ability to provide specialized insight for our clients so that they can progress into larger bond programs. With over 70+ years of underwriting experience, we know how to put a submission together. The answer will be, “Yes!”

Each SBA Program has different qualifications. There are many factors that go into meeting those requirements, such as personal/business credit, working capital, net worth, type of banking lines used, home ownership, and many other factors. If you don’t know which program is right for you, we encourage you to reach out to our Underwriters! They are here to answer your questions at (877) 201-8976 or (404) 486-2355.

• SBA Surety Bond Program
  • The SBA Slideshow can also be a helpful tool if the above article didn’t answer your questions
  • Apply Here using our Bond Kit or call (404) 486-2355/ (877) 201-8976 to discuss any questions you may have that is unique to your business
• SBA Fast Track Program
  • In most cases, same day approval!
  • Apply Here! or call (877) 201-8976/ (404) 486-2355 to discuss any questions you may have that is unique to your business

Along with having over 70 years of experience working with the SBA, we have underwriting experience in many other arenas. We strive for our contractor’s business to grow into larger single and aggregate work programs. In many cases, our contractors graduate from the Small Business Administration Program (SBA) to the Standard or Preferred bond programs. Some of these programs include:

• Preferred Program
  • Offered to clients with minimum of approximately $750,000 working capital, minimum $1.0-1.5 M net worth, home ownership, unsecured bank lines, good personal/business credit, and in business of 3-5 years or longer.
  • This is the ideal Program with low rates and larger bond capacity.
  • Apply Here! or call (404) 486-2355 to discuss your questions
• Standard Program
  • Fits most middle range businesses. Standards for this program usually include approximately $100,000 working capital, $250,000 net worth, good personal credit, secured bank lines, and clean D+B.
  • Apply Here! or call (877) 201-8976 to discuss any questions you may have.
• Non-traditional Program
  • Fits businesses who don’t meet the standards for the Preferred or Standard Program. These businesses might lack net worth and working capital.
  • Apply Here! or call (404) 486-2355 to discuss any questions you may have
• Fast-Track program
  • Offered to firms with surety needs up to $1,000,000 and with infrequent bonds
  • In some cases, no CPA financial statements required!
  • Apply Here! or call (877) 201-8976 to discuss your questions
• Asbestos Bond Programs
  • Apply Here! or call (404) 486-2355 to discuss your questions
• Hazardous Materials Waste Bond Program
• IDIQ program (Indefinite Delivery/Indefinite Quantity)
• MATOC (Multiple Award Task Order Contract)
• TMACC
• Lead Based Paint Bonds
  • Apply Here! or call (404) 486-2355 to discuss your questions. Apply today, approve today!

Fill out the application below or give us a call at (404) 486-2355 or (877) 201-8976 to discuss any questions you may have or apply here!