Which Bonds Are Eligible for the SBA Bond Guarantee Program?

The SBA Bond Guarantee Program is a program that is administered by the Small Business Administration in order to guarantee surety bonds for contractors. There are a few different types of bonds that are eligible for this program under SBA guidelines. Here are some of the different bonds that can be included.

Bid Bonds

One type of bond that is eligible for the SBA program is the bid bond. This is a type of bond that is necessary for contractors that are getting on a large project. They have to be able to supply a bond to ensure that they can complete the job according to specifications.

Payment Bonds

A payment bond is a bond that contractors can buy that will guarantee their payment to subcontractors and suppliers. This is necessary to ensure that everyone gets paid for the work and products that they provide.

Ancillary Bonds

This type of bond is essential to the contract. With this type of bond, the surety company will guarantee a particular aspect of a contract for the contractor.

Reclamation Bonds

Under the SBA program reclamation bonds are eligible if they are used to reclaim and restore an abandoned mine of some type. The project of reclamation has to be completed within a certain amount of time.

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