Effective March 18, 2024, the U.S. Small Business Administration has increased its contract limits under the Surety Bond Guarantee Program. This adjustment accounts for the 34.46% inflation since 2010. 

Read on to learn how these new limits may affect your business and your ability to get bonded for larger federal contracts and other projects.

SBA Announces New Limit for Surety Bond Guarantee Program

What’s the change?

The SBA is increasing the limits for their SBG (Surety Bond Guarantee) Program. The third-party CPA statement presentation is still in place for these programs.

  • The new contract limit increases to $9 million for all projects
  • The new limit is $14 million for Federal contracts.

The previous limits were $6.5 million and $10 million, respectively.

Who will this change affect?

New businesses may now gain eligibility for SBA Business Loan Programs. This latest ruling could especially apply to businesses in industries with receipts-based size standards. 

Since the SBA can now guarantee larger projects than before, this could increase the risk of program losses.

Why did the SBA adopt this rule?

According to rule 88 FR 48739, the SBA made these changes for three reasons:

  • Changes in Federal market conditions and industry structure
  • Inflation 
  • Adoption of the latest NAICS (North American Industry Classification System) revision

When do these new limits apply?

This rule is effective as of March 18, 2024.

What is the SBA Surety Bond Guarantee Program?

The U.S. Small Business Administration offers a unique service: the SBA Surety Bond Guarantee (SBG) Program. The program is designed to help small and up-and-coming businesses win contracts they otherwise may not qualify for. 

The ideal candidates for this program are contractors with the required skills and know-how who lack the experience and financial assets to be securely bonded outside the program. So, if you’re in the construction, supply, or service industry and want to compete for larger contracts, the SBG program may be for you.

Learn more on our blog!

Get the Contract Bonds You Need Fast

With multiple avenues to using the SBA bond program, ZipBonds continues to be a preferred partner with the Small Business Administration. Let us know if you run into anything that may need SBA assistance! We frequently help small contractors obtain bid, performance, and payment bonds through the SBA. Reach out any time by calling (888) 435-4191 or emailing support@zipbonds.com.