Phone: (610) 399-4080


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.

What Are SBA Bonds?

SBA Bonds are part of the Surety Bond Guarantee Program which 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.

How Do SBA Bonds Work?

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 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.

What Types of Surety Bonds Are There?

The SBA guarantees four types of surety bonds:

  • Bid: Ensures performance bonding for the contract bidder.
  • Payment: Ensures full payment to subcontractors and suppliers.
  • Performance: Ensures that a small business will fully complete a contract.
  • Ancillary: Ensures completion of requirements other than payment or performance, for tasks like maintenance.

Who Uses the Surety Bond Program?

  • Those looking to increase bond capacity (SBA can double/triple standard market bond capacity)
  • New Businesses/Companies (less than 3 years old)
  • Jobs that are 1.5-2X larger than previously completed projects
  • The SBA has a limit of $6.5 Million per bond for most contracts
  • If you require a CPA-prepared financial statement
  • Prior bankruptcy (over 1 year)
  • Credit issues/Recent losses
  • Insufficient financial resources

What Surety Bond Guarantee Programs Are There?

  • Prior Approval Program: In this program, each surety bond guarantee is approved separately by the SBA.
  • Quick Bond Program: This is a subset of the Prior Approval Program for companies with an infrequent need for a bond. The program offers streamlined underwriting and paperwork requirements in exchange for a smaller maximum guarantee amount.
  • Preferred Surety Bond Program: Under this program, the participating surety agent can issue, monitor and service surety bonds without the SBA’s prior approval. The terms may vary among different surety agents, based on their previous interactions with the SBA.

SBA Bond Program FAQ’s

The SBA website has a great FAQ that will help you with getting bonded. Whether you want to know the maximum contract you can get or the criteria required for the underwriting process, you’ll find an extensive answer for the common questions.

KOG Bonds walks each client through the process for types of SBA Bonds and we can have a new account approved into the program in several days.

OR CALL US TODAY AT (610) 399-4080