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What Makes Up SBA Surety Bond Guarantee Program



What Makes Up SBA Surety Bond Guarantee Program

Many federal and state projects need contractors to be bonded to submit a bid. The SBA’s Surety Bond Guarantee Program helps make contract bonds available for small and new construction businesses that cannot qualify through standard commercial channels. When evaluating a contractor’s ability to receive a bond, working capital is one of the most essential underwriting considerations for surety companies. However, equity (assets minus liabilities) is also considered.

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Working Capital

The SBA’s Surety Bond Guarantee Program encourages sureties to issue bid, payment, and performance bonds for small businesses that would not usually meet the standard required to obtain these bonds in the regular commercial marketplace. This federal backing eliminates some of the risks for the surety and gives them more incentive to approve these bond requests that they might otherwise decline. Contractors must purchase a bid bond and performance and payment bonds to do business on federal, state, or local projects that exceed $100,000. It is due to the Miller Act, which requires contractors on public works projects to obtain these types of bonds. Most contractors seeking these bonds work with a professional surety agency. These professionals help the contractor assemble and submit the required financial information to the underwriter. It reduces the time it takes to get the bond and increases access to more jobs. However, some contractor characteristics consistently limit their ability to be approved for a surety bond, such as prior bankruptcies, existing liens, low working capital, and limited experience on specific sizes and types of projects.


The small business administration’s SBG program provides financial backing, or guarantee, to contract surety bonds for businesses that cannot obtain them through the standard bond market. It allows bonding companies to offer bid, payment, and performance bonds to small contractors that may otherwise need help to meet their underwriting standards. Unlike bank guarantees, bond decisions are based on working capital (net worth). That is why most standard bonding companies do not write contractors with negative equity. A bonded contractor will only be removed from the program if it is determined that there has been a substantial regulatory violation. Contact a Surety Bond Professionals agent today to discuss the benefits of an SBA-guaranteed surety bond. We can help you secure the bond necessary to win that next project!


While insurance covers property damage and workers’ compensation, surety bonds cover the cost of a job not completed by the principal (the small business owner). It’s typical for construction jobs or projects done by government agencies to require a contract bond. Like an insurance company, a surety bond provider does due diligence before issuing the bond. It weighs the size of previous projects, the financial stability of the business and its owner, and its credit score. The SBA guarantee helps reduce the risk for the surety company and allows them to provide a bond that might otherwise be declined. That’s because SBA agrees to pay up to 90% of the losses sustained by the surety company for a fee, significantly lessening their liability. It’s essential to understand if your business qualifies for the SBA bond guarantee program and take the necessary steps to get bonded. 


The SBA guarantees bid, payment, and performance bonds for contractors that traditional commercial insurers would otherwise decline. In doing so, the SBA assumes 80% to 90% of any losses sustained by the surety, giving them much more incentive to approve small and emerging contracting businesses for bonding. Many contracts require a bond to guarantee the terms of the project. It protects the obligee, such as the governmental agency, and any subcontractors or suppliers that work on the job. Typically, these bonds require CPA-reviewed or audited financials with specific working capital, net worth, and profitability standards. Those requirements can often make it difficult for smaller, more established companies to qualify for the bonds they need to grow their business. The program allows these contractors to take on more projects, helping them build their capacity and strengthen their credit. They’re also expected to eventually “graduate” from the program and become bondable.



Flyfish Review – Reliable Financial Services for Businesses



Flyfish Review – Reliable Financial Services for Businesses

In this ever-changing world of business, the competition is fiercer than ever before, with entrepreneurs constantly seeking ways to gain an edge. While there are countless strategies to improve business operations, one fundamental factor demands our attention is the importance of choosing the right financial management solutions. This is where a company like Flyfish comes into play, offering a unique solution to empower businesses with the necessary tools for success. Read this Flyfish review to explore the exceptional features that make this business debit card provider stand out from the crowd.

Meet Your Operational Needs

It’s a fact that every enterprise boasts its own individual operational requirements, making it a unique entity. Recognizing the diverse and distinct needs of these businesses, Flyfish has gone the extra mile to tailor its services to meet their specific demands. Whether your company is in search of a business debit card a dedicated IBAN account for seamless expense management this company has your back. The devoted team driving this platform is unwavering in their dedication to innovation, continually expanding their arsenal to equip businesses with every financial tool they require, making sure that they stand out from others.

Furthermore, if you ever encounter a perplexing situation, grappling to pinpoint the ideal solution that harmonizes with your business’s unique requirements, this online IBAN account provider lends an inviting hand. Their devoted support team is readily available with just a message or call, consistently prepared to provide seasoned counsel and help you in crafting the most astute financial choices for your enterprise.

The Right Way to Manage Your Payroll

In today’s fast-paced business world, ensuring that your employees receive their salaries promptly is a non-negotiable aspect of running a successful enterprise. Employees are the backbone of any organization, and their financial well-being directly impacts the productivity of your business. Mistakes in corporate payroll management can lead to significant disruptions and even harm your company’s reputation. Flyfish’s payroll service is a standout solution, primarily due to its commitment to data security and adherence to the highest security standards. This level of dedication provides businesses with a strong sense of trust and peace of mind.

What sets this company apart is its flexibility in catering to your business’s unique requirements. It’s not a one-size-fits-all approach; instead, their services can be tailored to align perfectly with your specific requirements. This customization ensures that your payroll management is not only efficient but also seamlessly integrated into your business operations, allowing you to focus on growing your business and ensuring your employees are well taken care of.

Easy Sign-Up for Your Convenience

Historically, obtaining an online IBAN account through financial services has proven to be a time-consuming and often frustrating ordeal. The journey typically entails navigating a complex maze of strict prerequisites, all while enduring the looming uncertainty of your application being turned down. This not only drains your valuable time and energy but also diverts focus from more productive endeavors.

Flyfish proves to be a breath of fresh air in this regard. In stark contrast to the convoluted processes associated with other service providers, this company streamlines the onboarding experience. I was quite impressed to see that your journey with this business debit card provider is a straightforward affair, allowing you to swiftly secure a dedicated business IBAN account without unnecessary hassles. Moreover, the user-friendly approach of this company essentially frees you from these complexities, granting you the freedom to allocate your time and energy where it truly matters.

Unparalleled Focus on Customer Satisfaction

Flyfish stands out through its steadfast commitment to providing customer support that truly stands out, redefining the benchmarks within the business landscape. This isn’t just a mere change; it’s a revitalizing gust of fresh air. The customer support team at this financial services provider is heads and shoulders above what a lot of other platforms offer. These pros become an invaluable ally, poised to guide you with an unparalleled level of expertise and dedication, ensuring your interaction with them is utterly smooth. What truly distinguishes this financial solution provider’s support is the profound wealth of knowledge and experience that their team brings to the table.

When you reach out for their guidance, you’re accessing a treasure trove of wisdom and expertise capable of making a profound impact on your business operations. Their role transcends simple assistance; as they work hard to find the right solutions for you. The representatives of this company also recognize the true value of your time, treating it as your most precious commodity. When you make contact, you can not only expect expert advice but also rapid, efficient responses.

Final Thoughts

With a dedicated commitment to addressing the unique needs of businesses, Flyfish streamlines essential aspects such as corporate payroll management and onboarding, making life easier for entrepreneurs. The customer-centric approach they embody is truly unparalleled, with a support team that not only provides expert guidance but also values your time, ensuring swift and efficient solutions to keep your business on the path to success.

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