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SBA Surety Bond Guarantee Program.

SBA guarantees eligible bid, payment, performance, and ancillary bonds issued by authorized sureties so qualified small contractors can compete for bonded work.

Offered byU.S. Small Business Administrationverified 2026-07-10

Overview

What it does.

A Chester-area contractor works through an SBA-authorized surety agent. SBA guarantees part of the surety's risk; the guarantee is not working capital and does not replace the contractor's responsibility to perform the contract.

Best for: Small contractors that can perform a project but cannot obtain required bonding on ordinary commercial terms.

Eligibility

Who and what may qualify.

Eligible applicants

  • Small businesses that meet SBA size standards and an authorized surety's credit, capacity, and character review
  • All direct and indirect owners must be U.S. citizens or U.S. nationals

Applicants excluded by the source

  • Businesses seeking commercial bonds not covered by the program
  • Contracts above applicable SBA limits
  • Businesses with any direct or indirect owner who does not meet SBA's current citizenship or nationality requirement

Eligible uses

  • Bid bonds
  • Payment bonds
  • Performance bonds
  • Ancillary bonds tied to an eligible contract

Uses excluded by the source

  • Commercial bonds
  • Guarantees unrelated to an eligible contract

Application

How to start.

  1. Confirm the business and contract fit SBA limits
  2. Use SBA's directory to contact an authorized surety agent serving Illinois
  3. Provide financial, experience, backlog, and contract information for surety review

Timing: Applications are tied to contract and bond timing.

Planning notes

Limits to account for.

  • The program guarantees contract bonds, not commercial bonds
  • The business must pass the surety's underwriting review
  • Performance and payment guarantees carry an SBA fee
  • Current SBA policy requires 100 percent qualifying U.S. citizen or U.S. national ownership

Bonding may support a financed contract, but it is not project financing and should be coordinated with working-capital needs.

Evidence

Official sources.