Surety1 Granted Access to the SBA Bond Guarantee Program
Barry Page of Surety Solutions Insurance Services, Inc. (http://www.surety1.com) has been granted access for account submissions for the Small Business Administration (SBA) Bond Guarantee program. Surety1 is a recognized industry leader in obtaining surety credit for contractors participating in the federal government 8(a) program. “This is yet another tool we have to help contractors obtain bonding in a difficult market,” according to Page.
Sacramento, CA (PRWEB) June 12, 2012
Barry Page of Surety Solutions Insurance Services, Inc. (Surety1) has been granted access for account submissions for the SBA Bond Guarantee program. The program was established by the U.S. Small Business Administration (SBA), with the support of the surety markets. By using the SBA program many contractors that would not qualify through standard distribution channels may qualify for bonding in an SBA environment. With the SBA providing guarantees to the surety underwriters of up to 80% of the bond amount, the underwriters are able to take on risks that are not in compliance with standard underwriting guidelines.
Not all contractors will qualify for the program. According to the Small Business Administration, companies must meet the following criteria to qualify for the Bond Guarantee program::
The business must be classified as small is defined by the SBA. (The SBA defines small as”General and Heavy Construction” with annual receipts that do not exceed $13.5 to $17 million and “Special Trade Construction” with annual receipts may not exceed $7 million).
The business must not be able to obtain a bond without an SBA guarantee.
The contract size cannot exceed $2 million.
The SBA will still evaluate the Character, Capacity, and Credit of the company.
The contract must require a bond.
The professionals at Surety1 will work closely with its contractor clients to determine if these conditions are met. Since 2006 Surety1 has placed over $250 million in bonds for contractors participating in the 8(a) program established by the Small Business Administration. The 8(a) is a federal program that gives preference to small disadvantaged businesses. 8(a) contractors are those owned and controlled at least 51% by socially and economically disadvantaged individuals.
The SBA Bond Guarantee program differs from the 8(a) because it is available to small businesses that meet the requirements regardless of whether they are owned and controlled by socially and economically disadvantaged individuals.
Surety1 is an independent insurance agency based in Rancho Cordova, California, specializing in the placement of surety bonds and other specialty insurance products.
For more information on obtaining a Performance Surety Bond, you can contact Surety Solutions through its website, http://www.surety1.com, by calling toll free, at 877-654-2327 or e-mail, at info(at)surety1(dot)com
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/6/prweb9595284.htm