The SBA Surety Bond Guarantee Program
The U.S. Small Business Administration guarantees a portion of a surety's loss on bonds written for eligible small contractors. That guarantee is what lets a surety say yes to accounts it would otherwise decline.
Requesting a bond does not affect your credit.
Why the program exists
Traditional surety underwriting rewards long track records and large balance sheets. A newer or growing contractor can be perfectly capable of performing a $600,000 job and still fall outside those guidelines.
Through the SBA Surety Bond Guarantee Program, the SBA agrees to reimburse the surety for a share of any loss on a guaranteed bond. The surety's net exposure drops, so it can extend bonding capacity to contractors who would otherwise be turned away.
The bond itself is still a normal bid, performance, or payment bond. The owner receives the same protection. The guarantee sits behind the scenes between the SBA and the surety.
Who it typically fits
Good candidates
- Small businesses that meet SBA size standards for their industry
- Contractors with limited bonding history or a short balance sheet
- Companies stepping up to a larger contract than they have bonded before
- Owners with credit that falls short of standard surety guidelines
What is still required
- A bondable contract with a public or private owner
- Business financial statements and a work in progress schedule
- Evidence you can perform the scope you are bidding
- Standard SBA program fees in addition to the bond premium
Program eligibility, contract size limits, and fees are set by the SBA and can change. CapStream confirms current requirements when we review your account.
How CapStream uses the program
We underwrite your account first
If your financials support a standard bond, we write it without the program.
We add the SBA guarantee when it helps
For accounts outside standard guidelines, the guarantee raises approved capacity.
We pair it with funding
Mobilization funding covers the startup costs the larger contract creates.
We grow the line over time
Completed bonded jobs build the history needed for standard capacity later.
Read more about how bonding lines are sized or start with the surety bond overview. Official program details are published by the U.S. Small Business Administration.
Declined elsewhere? See what CapStream can approve
Requesting a bond or loan does not affect your credit.