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      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million for federal contracts if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 80% to 90% of the surety\u2019s loss if a default occurs. In FY2019, the SBA guaranteed 9,905 bid and final surety bonds with a total contract value of nearly $6.5 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and may be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nSurety bonds are important to small businesses interested in competing for federal contracts because the federal government requires prime contractors\u2014prior to the award of a federal contract exceeding $150,000 for the construction, alteration, or repair of any building or public work of the United States\u2014to furnish a performance bond issued by a surety satisfactory to the contracting officer in an amount that the officer considers adequate to protect the government.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million for federal contracts if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million for federal contracts if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with the sole source contracting limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that initially provided a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increased the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses; and (3) the decision to increase the program\u2019s bond limit.",
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      "id": 603986,
      "date": "2019-08-22",
      "retrieved": "2019-08-26T22:06:53.007064",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million for federal contracts if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 80% to 90% of the surety\u2019s loss if a default occurs. In FY2018, the SBA guaranteed 10,800 bid and final surety bonds with a total contract value of nearly $6.5 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and may be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nSurety bonds are important to small businesses interested in competing for federal contracts because the federal government requires prime contractors\u2014prior to the award of a federal contract exceeding $150,000 for the construction, alteration, or repair of any building or public work of the United States\u2014to furnish a performance bond issued by a surety satisfactory to the contracting officer in an amount that the officer considers adequate to protect the government.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million for federal contracts if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million for federal contracts if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that initially provided a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increased the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses; and (3) the decision to increase the program\u2019s bond limit.",
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      "id": 592115,
      "date": "2019-02-22",
      "retrieved": "2019-04-17T14:15:04.675193",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 80% to 90% of the surety\u2019s loss if a default occurs. In FY2018, the SBA guaranteed 10,800 bid and final surety bonds with a total contract value of nearly $6.5 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and may be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nSurety bonds are important to small businesses interested in competing for federal contracts because the federal government requires prime contractors\u2014prior to the award of a federal contract exceeding $150,000 for the construction, alteration, or repair of any building or public work of the United States\u2014to furnish a performance bond issued by a surety satisfactory to the contracting officer in an amount that the officer considers adequate to protect the government.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that initially provided a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increased the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses; and (3) the decision to increase the program\u2019s bond limit.",
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      "date": "2018-08-03",
      "retrieved": "2018-09-12T22:30:04.655617",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 80% to 90% of the surety\u2019s loss if a default occurs. In FY2017, the SBA guaranteed 10,397 bid and final surety bonds with a total contract value of over $6.0 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds are viewed as a means to encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and are considered to be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that initially provided a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increased the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses; and (3) the decision to increase the program\u2019s bond limit. \nThis report also examines the program\u2019s eligibility standards and requirements and provides performance statistics.",
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      "id": 580400,
      "date": "2018-04-23",
      "retrieved": "2018-04-24T13:03:58.727892",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 80% to 90% of the surety\u2019s loss if a default occurs. In FY2017, the SBA guaranteed 10,397 bid and final surety bonds with a total contract value of over $6.0 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds are viewed as a means to encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and are considered to be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that initially provided a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increased the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses; and (3) the decision to increase the program\u2019s bond limit. \nThis report also examines the program\u2019s eligibility standards and requirements and provides performance statistics.",
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      "retrieved": "2017-10-02T22:40:58.602507",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 80% to 90% of the surety\u2019s loss if a default occurs. In FY2016, the SBA guaranteed 10,435 bid and final surety bonds with a total contract value of over $5.7 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds are viewed as a means to encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and are considered to be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that initially provided a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increased the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses (effective November 25, 2016); and (3) the decision to increase the program\u2019s bond limit. \nThis report also examines the program\u2019s eligibility standards and requirements and provides performance statistics.",
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      "id": 458350,
      "date": "2017-01-13",
      "retrieved": "2017-01-24T16:59:51.195742",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 80% to 90% of the surety\u2019s loss if a default occurs. In FY2016, the SBA guaranteed 10,435 bid and final surety bonds with a total contract value of over $5.7 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds are viewed as a means to encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and are considered to be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that initially provided a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increased the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses (effective November 25, 2016); and (3) the decision to increase the program\u2019s bond limit. \nThis report also examines the program\u2019s eligibility standards and requirements and provides performance statistics.",
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      "id": 451998,
      "date": "2016-04-22",
      "retrieved": "2016-11-28T22:18:58.522702",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 70% to 90% of the surety\u2019s loss if a default occurs. In FY2015, the SBA guaranteed 11,480 bid and final surety bonds with a total contract value of over $6.3 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds are viewed as a means to encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and are considered to be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit to $6.5 million, or up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The limit had been $2 million since 2000, with a temporary increase from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million if a federal contracting officer certified in writing that such a guarantee was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that provides a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increases the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses starting one year from enactment (effective November 25, 2016); and (3) the decision to increase the program\u2019s bond limit. \nThis report also examines the program\u2019s eligibility standards and requirements and provides performance statistics.",
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      "id": 448301,
      "date": "2015-12-23",
      "retrieved": "2016-04-06T17:38:48.092647",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "The Small Business Administration\u2019s (SBA\u2019s) Surety Bond Guarantee Program is designed to increase small businesses\u2019 access to federal, state, and local government contracting, as well as private-sector contracts, by guaranteeing bid, performance, and payment bonds for small businesses that cannot obtain surety bonds through regular commercial channels. The program guarantees individual contracts of up to $6.5 million, and up to $10 million if a federal contracting officer certifies that such a guarantee is necessary. The SBA\u2019s guarantee currently ranges from 70% to 90% of the surety\u2019s loss if a default occurs. In FY2015, the SBA guaranteed 11,480 bid and final surety bonds with a total contract value of over $6.3 billion.\nA surety bond is a three-party instrument between a surety (who agrees to be responsible for the debt or obligation of another), a contractor, and a project owner. The agreement binds the contractor to comply with the contract\u2019s terms and conditions. If the contractor is unable to successfully perform the contract, the surety assumes the contractor\u2019s responsibilities and ensures that the project is completed. Surety bonds are viewed as a means to encourage project owners to contract with small businesses that may not have the credit history or prior experience of larger businesses and are considered to be at greater risk of failing to comply with the contract\u2019s terms and conditions.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, increased the program\u2019s bond limit, which had been $2 million since 2000, and was temporarily increased, from February 17, 2009, through September 30, 2010, to $5 million, and up to $10 million if a federal contracting officer certified in writing that a guarantee in excess of $5 million was necessary. Advocates of raising the program\u2019s bond limit argued that doing so would increase contracting opportunities for small businesses and bring the limit more in line with limits of other small business programs, such as the 8(a) Minority Small Business and Capital Ownership Development Program and the Historically Underutilized Business Zone (HUBZone) Program. Opponents argued that raising the limit could lead to higher amounts being guaranteed by the SBA and, as a result, increase the risk of program losses.\nThis report examines the program\u2019s origin and development, including (1) the decision to supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that provides a lower guarantee rate (not to exceed 70%) than the Prior Approval Program (not to exceed 80% or 90%, depending on the size of the contract and the type of small business) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA\u2019s prior approval; (2) P.L. 114-92, the National Defense Authorization Act for Fiscal Year 2016, which increases the Preferred Surety Bond Guarantee Program\u2019s guarantee rate from not to exceed 70% to not to exceed 90% of losses starting one year from enactment; and (3) the decision to increase the program\u2019s bond limit. \nThis report also examines the program\u2019s eligibility standards and requirements and provides performance statistics.",
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      "date": "2013-12-11",
      "retrieved": "2014-12-05T09:57:41",
      "title": "SBA Surety Bond Guarantee Program",
      "summary": "This report examines the program's origin and development, including the decision to (1) supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that provides a lower guarantee rate (70%) than the Prior Approval Program (80% or 90%) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA's prior approval; and (2) increase the program's bond limit.",
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          "source": "LIV",
          "id": "Surety and fidelity",
          "name": "Surety and fidelity"
        },
        {
          "source": "LIV",
          "id": "Insurance",
          "name": "Insurance"
        },
        {
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          "id": "Liability (Law)",
          "name": "Liability (Law)"
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  "topics": [
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}