“How to apply for an SBA Surety Bond Guarantee”

Introduction:

There are two SBA Surety Bond Guarantee Programs, the Prior Approval or SBG Program, and the Preferred or PSB Program.

SBA does not issue bonds directly to a contractor.   The contractor must first choose a surety company or bonding agent who represents a participating surety company and establish a business relationship.  The contractor then completes the surety application and submits the required SBG forms, providing the agent with necessary credit, capacity, and character information.  The agent underwrites the application and decides whether to execute the bond with or without an SBA guarantee.

A list of participating Prior Approval Surety Companies and agents empowered to represent the individual companies can be viewed by clicking here.  A list of participating Preferred Surety Companies can be viewed by clicking here.

Applying for a bond:

The new electronic bond application process is part of Prior Approval Program.  For each Program, Prior Approval or Preferred, the contractor must first establish a business relationship with the surety company or agent representing a surety company.  This means that the company or agent is willing to issue you a bond, provided SBA will issue a bond guarantee. Once you have established the business relationship with the surety company or agent, there are two ways that you can apply for a bond under the Prior Approval Program, electronic or paper.  The application process under the Preferred Program is paper only, and can be discussed directly with the Preferred Surety Company representative.

Prior Approval Program:

You can submit applications electronically through the E-Application (E-App) system, which is available 24 hours a day, seven days a week.  All required information can be entered electronically and sent to your surety company agent.  Click on E-App. System below to access. 
 
As described in the “Contractor” and “Agent” User Manuals, (click each to access), some of the electronic information must also be printed, signed, and mailed to the agent/surety and SBA.

All of the forms that comprise the application are in PDF format and are accessed in the E-Application.  In the course of completing the electronic application, the following forms must be printed, signed and mailed to the agent.  The electronic application system will periodically prompt you to print and sign these forms.

• SBA Form 994 – Application for Surety Bond Assistance
• SBA Form 991 – Surety Bond Guarantees Addendum
• SBA Form 912 – Statement of Personal History
• SBA Form 413 – Personal Financial Statement

If you choose to complete your application manually, you can access the forms on this website, fill them out and mail them to the surety company or agent.  You must also complete the SBA Form 994F, Schedule of Uncompleted Work.

 Forms that are required of the surety or agent are listed below:

• 990 – Surety Bond Guarantee Agreement
• 944b – Surety Bond Guarantee Underwriting Review

When the electronic system is used, a paper copy of the 994b is not required.  The Surety Co. or agent is required to print, sign and mail the original 990, Surety Bond Guarantee Agreement to the Denver or Seattle Office, along with the contractor’s fee check.  The original 994 must be retained by the Surety or agent, and be made available during any subsequent Government audit.