Effective October 1, 2018, the Small Business Administration’s Surety Bond Guarantee (SBG) program will cut the contractor’s fee for surety bond guarantees from $7.29 per $1,000, to $6.00 per $1,000. Many small and emerging contractors rely on the SBA to gain access to surety credit, and since the SBA fee is paid on top of surety bond premium, any reduction is a welcome relief to a growing contractor. With this new fee structure, a contractor will save $1,935 on an SBA backed $1.5 million dollar performance and payment bond.
If you are new to bonding, having trouble getting a bond or having trouble getting a surety to keep up with your growth, Florida Surety Bonds, Inc. can help you get bonding through one of our 60 different sureties and, if needed, with the SBA’s backing. Under its SBG program, the SBA guarantees bid, payment and performance bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. The SBA guarantees contracts up to $10 million, and they have a streamlined QuickApp application for bonds up to $400,000. This year alone, we have helped our new and growing contractors expand their business with millions of dollars in SBA backed bonds. Give us a call at (407) 786-7770 to find out how we can help you grow your business with SBA backing and the expert advice of Florida Surety Bonds, Inc.
For more information on the Surety Bond Guarantee Program, see the SBA Press Release.
