Small, minority & disadvantaged contractors should check out SBA Surety Bonds including Bid Bonds, Performance Bonds and Payment Bonds.
KOG International, headquartered in West Chester, PA has successfully operated in the SBA Surety Bond Guarantee Program for more than 15 years and is the largest SBA bond broker on the East Coast.
The SBA Surety Bond Guarantee Program was developed to provide small, minority and disadvantaged contractors increased business opportunities through surety bonds. The SBA Bond Guarantee Program is sponsored and endorsed by the U.S. Small Business Administration.
When a contractor is approved into the SBA Bond Program, their bonds are guaranteed to the surety company writing the bond. In the event of a default on an SBA backed bond, the contractor’s 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 three 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 million.
The SBA Bond Program requires no collateral or escrow and can help eliminate these underwriting controls from a contractor’s current bond program.
KOG walks each client through the SBA process and can have a new account approved into the program in several days.
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OR CALL US TODAY AT (610) 399-4080