Definition
A bond program is a pre-arranged agreement that gives contractors ongoing access to surety bonds without restarting the full underwriting process each time. In effect, it’s like having a “line of credit” specifically for bonding. Once approved, you can quickly draw bonds for new jobs instead of beginning from scratch every time.
Why Contractors Need It
Streamlined Bonding Process
No need to reapply for each job—once in the program, bonds can be issued instantly or in just hours.
Enhanced Project Flexibility
With greater bonding capacity you can take on bigger or more complex jobs and hit tight deadlines.
Increased Client Trust
A contractor with an established bond program signals financial strength and reliability—giving you a competitive edge.
Types of Contract Bonds Available
With a bond program, you’ll typically have access to:
- Performance bonds: Guarantees project completion as agreed.
- Payment bonds: Ensure subs/vendors are paid for work or materials.
- Bid bonds: Show you’re serious, financially capable, and ready to perform if selected.
- Other bonds: Maintenance bonds, supply bonds, subdivision bonds, etc., as your work evolves.
How to Qualify for a Bond Program
To get approved, you’ll need:
- Financial strength: Good financials, credit, and working capital.
- Experience & track record: A history of successfully completing projects builds surety confidence.
- Strong agent/surety relationships: Partnering with an experienced bond agent gives you access to better terms and faster approvals.
4 Steps to Set Up Your Bond Program
- Contact a reputable agent: Start a conversation about your bonding goals.
- Gather financial documents: Prepare statements, credit reports, project history.
- Apply and undergo underwriting: The surety evaluates your business.
- Get approved: You receive a bonding line of credit to draw from for various projects.
Debunking Common Misconceptions
- “Only large contractors need a bond program.” Not true — even smaller contractors benefit by accessing larger work.
- “Bond programs are too complicated.” With the right agent, the process is streamlined and clear.
- “Bond programs are too expensive.” The investment pays off with greater job flexibility, speed, and growth opportunities.
Support from the SBA
The SBA’s Surety Bond Guarantee Program now allows:
- $9 million bonding limit for all projects
- $14 million limit for federal contracts
That means even small contractors can grow into much larger jobs.
Get your bond program in place and unlock new growth potential.
With a pre-approved line of bonding credit you’ll be ready to bid on the right jobs, move fast, and show clients you’re a trusted partner.