For the first time in 12 years, the United States Small Business Administration (SBA) has announced a decrease in Surety Bond Guarantee fees. This decrease will affect guaranteed bonds approved during fiscal year 2019, from Oct 1, 2018 to Sep 30, 2019. These savings end up directly in the pocketbooks of contractors and small businesses, who can pay six percent less in surety guarantee fees. In addition, businesses can take advantage of reduced SBA contractor fees, from $7.29 to $6.00 per $1,000 of the contract amount.
The SBA’s Surety Bond Guarantee (SBG) program covers bid, performance, and payment bonds for emerging businesses. This guarantee also incentivizes surety companies to assist small businesses by providing surety bonds. More businesses can now have access to the confidence that a surety bond brings, thanks to the efforts of the SBA and their partnering companies.
“Reducing the SBG program fees will not only directly help small businesses, but also will incentivize surety companies and their agents to increase support for small businesses in the marketplace,” said Peter C. Gibbs, Acting Director of SBA’s Office of Surety Guarantees.
The SBG program partners with surety providers such as Viking Bond Service to help small businesses purchase surety bonds when they otherwise wouldn’t be able to. Acquiring surety bonds helps businesses win contract bids since many projects require or prefer to work with bonded companies. In turn, this helps create and sustain more successful small businesses, which is the goal of the SBA.
Viking Bond Service provides a hassle-free approach to surety bonds, giving contractors and project owners confidence in the successful completion of their job. If you’re in need of SBA’s assistance, Viking Bond Service can help your business connect the dots required to get surety bonds and win more contracts. To get the process started, our online surety bond application is a great first step. Our easy quoting process and fast process times means you can get your project bonded in a better way. If you have any questions about the SBA’s Surety Bond Guarantee program or the surety bond process, don’t hesitate to contact us.