SBA surety bond guarantees would rise to $18 million

What does this do?

This bill raises the maximum federal guarantee on a surety bond from $6.5 million to $18 million. If the SBA requests extra funding from Congress to keep the program running, that cap automatically drops by one-third until the issue is resolved. Up to 2% of the program's revolving fund can be used each year for the SBA's own costs, and both the SBA and the Government Accountability Office must produce reports on the program.

Who does it affect?

Small businesses that seek government or private construction and service contracts are most directly affected. Surety companies that back those contracts are also affected.

Why does it matter?

A higher guarantee limit changes which contracts small businesses are able to pursue. The automatic cap reduction and reporting requirements create oversight mechanisms tied to the program's financial condition.

What does it cost, and who pays?

• Up to 2% of revolving fund used yearly
• Covers SBA tech and outreach costs