ALAMO SURETY BONDS

THE SBA BOND GUARANTEE PROGRAM

Helping Small Contractors Grow

SMALL & EMERGING CONTRACTOR PROGRAM


Historically, small and emerging contractors have had difficulty in obtaining payment and performance bonds. While many small and minority-owned contractors have the necessary experience and expertise to perform successfully, they may not meet the surety's requirements in other areas including:

Quality of financial statements
Credit score
Lack of bank line of credit
Type of work

To address this continuing problem, we are authorized to place surety bonds in the SBA Bond Guarantee Program. 



SBA BOND GUARANTEE PROGRAM
The SBA Bond Guarantee Program was established by Congress in 1971 to address the plight of small and emerging contractors that are often unable to obtain surety bonds within the standard market. 

The SBA will guarantee a bond up to 90% in many cases. This allows the surety to loosen its normal underwriting criteria. Contractors in the SBA Program are able to obtain bonding at a higher level than they would in the standard surety market.

Alamo Surety Bonds is an active participant in the SBA Bond Program. 

HOW IT WORKS

A contractor must must first apply for the bond, providing the necessary application, financials, and other documents as required by the surety. If the contractor does not meet the surety's standard underwriting guidelines, it may chose to place the contractor in the SBA Program as a viable solution. There are 2 additional SBA forms that the contractor must complete and sign:

The SBA Form 912 - Statement of Personal History
The SBA Form 994 - Application for Surety Guarantee

COST

In addition to the surety bond premium, the SBA charges a contractor fee of 0.729% of the final contract price. 

*** FEE REDUCTION *** Effective October 1, 2018, the SBA Fee will be 0.6% of the final contract price ***

For more info, call Jim at (210) 930-5550