The Surety Bond Guarantee Program (SBG)

The Surety Bond Guarantee Program provides small and minority contractors with contracting opportunities for which they could not otherwise compete. By law, prime contractors to the federal government must post surety binds on federal construction projects valued at $100,000 or more. Many state, county, municipal and private4 sector contracts also require bonding, but small and minority businesses may not be able to obtain bonds through regular commercial channels. Through this program, the U.S. Small Business Administration (SBA) can guarantee bid, performance and payment bonds for contracts up to $1.25 million for eligible small contractors.

A Surety bond is a three-way agreement between the surety company, the contractor and the project. It binds the contractor to comply with the terms of a contract. If the contractor is unable to do so, the surety assumes the responsibility and ensures that the project is completed.

The Center also provides a resource center with computers equipped with appropriate software, handbooks, magazines, and other resource materials. Since its opening last summer, the SBDC has assisted approximately 100 clients, primarily in the areas of business start-up, business plan writing, financing, marketing, government procurement, and minority certifications. We conduct a series of low-cost and FREE workshops to guide and help prepare you for business.