SBA Bonds

SBA Bond Guarantee Program

SKOG International, Inc. is the largest SBA bond broker in the Northeast region. KOG has successfully operated in the SBA program for the past 15 years and has had tremendous success providing bonds to contractors that wouldn’t qualify with other sureties. Contractors with negative equity, negative net worth, previous bankruptcies, poor financial performance or inadequate credit are eligible for the SBA program. The program requires no collateral or escrow and can help eliminate these underwriting controls from a contractors bond program. KOG walks each prospect through the SBA process and can have a new account approved into the program within 5 business days.

The SBA Surety Bond Guarantee Program was developed to provide small, minority and disadvantaged contractors increased business opportunities through surety bonds. The Bond Guarantee Program is sponsored and endorsed by the U.S. Small Business Administration. When a contractor is approved into the Bond Guarantee Program their bonds are guaranteed to the surety company writing the bond. In the event of a default on an SBA backed bond the contractors surety company would be reimbursed 80%-90% of any loss incurred. The advantage of the SBA guarantee to the contractor is that the surety is willing to take on a higher risk with the knowledge that any loss is minimized by the SBA guarantee. A high-risk contractor can fall into 3 main categories; financially troubled, startup company / company new to bonding, or a contractor seeking larger bonds than their financial statement would allow in the standard market. The Bond Guarantee Program can guarantee a single bond up to $10,000,000 for qualified contractors.

Please click here to receive more information on the SBA Bond Guarantee Program.