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Up to $6.5 million for non-federal contracts and up to $10 million for federal contracts.
SBA offers an 80% guarantee on bonds for all other individual contracts up to $6.5 million or up to $10 million if a federal contracting officer certifies that SBAs guarantee is necessary for the small business to get a bond.
Surety bonds are important to small businesses interested in competing for federal contracts because the federal government requires prime contractorsprior 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 Statesto furnish a
The surety bond guarantee (SBG) program is program run by the U.S. Small Business Administration (SBA) to guarantee bid, performance and payments bonds for individual contracts worth $6.5 million or less for small and emerging contractors.
What Are Surety Bonds. A surety bond is a promise to be liable for the debt, default, or failure of another. It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).
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SBA offers an 80% guarantee on bonds for all other individual contracts up to $6.5 million or up to $10 million if a federal contracting officer certifies that SBAs guarantee is necessary for the small business to get a bond.
One key difference between performance bonds and surety bonds is the scope of their coverage. Performance bonds only cover a specific project, while surety bonds can cover multiple projects or ongoing business activities. Another difference is the party responsible for paying the bond premium.
Surety bond premiums (the amount you pay) are often calculated as a percentage of the total bond amount, usually between 0.5% and 5% of the bond amount for applicants with good credit, and between 5% up to as much as 20% of the bond amount for applicants with poor credit.

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