Get Surety Bond Webinar. Pdf - SBA - Sba

Surety bonds are a business's way of reassuring customers that they stand behind their promises—and if they don't, consumers will be protected. If a business breaks its promises to its customers and they suffer financial loss, the bond can provide reimbursement.

The SBA's Surety Bond Guarantee (SBG) program provides surety bond guarantees for small businesses on federal, state, local, private contracts, and subcontracts in direct partnership with surety companies and their agents.

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).

SBA guarantees surety bonds Many public and private contracts require surety bonds, which are offered by surety companies. The SBA guarantees surety bonds for certain surety companies, which allows the companies to offer surety bonds to small businesses that might not meet the criteria for other sureties.

SBA guarantees surety bonds Many public and private contracts require surety bonds, which are offered by surety companies. The SBA guarantees surety bonds for certain surety companies, which allows the companies to offer surety bonds to small businesses that might not meet the criteria for other sureties.

The surety bond requires the principal to sign an indemnity agreement that pledges company and personal assets to reimburse the surety if a claim occurs. If these assets are insufficient or uncollectable, the surety pays its own money to satisfy the claim.

The SBA's Surety Bond Guarantee (SBG) program provides surety bond guarantees for small businesses on federal, state, local, private contracts, and subcontracts in direct partnership with surety companies and their agents.