SBA-backed surety bonds help small businesses succeed. Surety Bonds
Eligible small businesses in the construction, supply, and service sectors better compete for contracting and subcontracting jobs using SBA- backed surety bonds. How you benefit Surety bonds help small businesses receive the bonding assistance they need to win contracts by providing the customer with a guarantee the work will be completed. How surety bonds work Many contracts require surety bonds, which are offered by surety companies. The SBA guarantee provides an incentive for surety companies to work with small businesses that would normally not be able to obtain the bond. Is the program right for you? Small businesses that often come to the SBA for surety bonds: » startups and firms in business less than three years » businesses with credit issues or internally prepared financial statements » those who cannot secure bonding through regular commercial channels » subcontractors with a desire to establish their own bonding as a prime contractor » those wishing to increase their current bonding limits
HOW THE SBA HELPED ME SUCCEED With SBA-backed surety bonds, Frank Spencer III has been able to better compete for commercial and government contracts. Aztec Contractors of El Paso, TX received the bonding support it needed to compete for construction contracts with the General Services Administration, U.S. Army Corps of Engineers, and the Mission and Installation Contracting Command. Frank acquired Aztec in 2006 with no capital and only two employees. Now he employs 25 full time and provides internship opportunities. Sales have grown to about $30 million annually. Aztec now qualifies for bonding in the standard surety market without SBA support.
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