The SBA Surety Bond Guarantee Program, created in 1970, helps small and minority-owned construction firms get bonding they couldn't otherwise access. It grew from under 100 bonds in year one to over 7,000 annually, and has helped firms jump from $300,000 to $1,000,000 in bonding limits.
Questions this video answers
December 30, 1970.
80%.
Less than 100 bonds in the first year; over 7,000 bonds in the most recent year cited.
From $300,000 to $1,000,000 (as reported by a speaker).
17 years (speaker reported).
Chapters
Small businesses are the backbone of our country. The Surety Bond Guarantee program is helping small contractors, small businesses that would otherwise not be able to participate on a specific project.
SBA's Surety Bond Guarantee Program was created officially on December 30, 1970, through a housing and Urban Development act that was passed by Congress the early 70s. There was a lot of economic tumult going on at the time and the Housing and Urban Development act was passed with the Surety Bond Guarantee Program in it in order to create access to contracting opportunities for small businesses.
A surety bond is a three party agreement between a small business, a surety company, and the owner. And what it does, it just guarantees to the owner that the job is completed.
The program is pretty much based around socially disadvantaged and minority contractors that would not be able to secure bonding without the SBA supports.
The SBA Bonding Guarantee Program helps these firms have access to opportunities where they would otherwise be declined.
80% of the businesses that we support are in the construction area, but we can also support any business that requires a surety bond as part of the contract. We can support private or public. All the loan programs are administered through the Office of Cap Access. And within Cap Access you have the Office of Surety Guarantees. I think in the first year we did less than 100 bonds, and last year we did over 7,000 bonds.
We've made a lot of progress from the days of sitting down at a typewriter and, you know, hand completing these forms to the digital era that we're now in. The SBA has made leaps and bounds in terms of becoming more efficient and more economical to work with.
So none of this would be possible if I didn't have a staff who believed in the mission of SBA and the mission of the office and is dedicated to serving, you know, small businesses. I can't tell you how this program has really impacted people's lives, where small businesses actually walk up to me and tears coming down their eyes and tell me every time I go out, I get these types of stories.
We landed substantial work as being bonded through the sba, helping us stay competitive in our particular market. But mostly, I would say, the businesses that don't have experience and financial backing to get bonded. The SBA is real good at lending a good hand at that. So we're very grateful.
We've been in business 17 years. About three years ago, the economy really hurt us and we had to shut our business down temporarily. And when we applied with the SBA, our limit went from 300,000 to a million Dollars. This program has definitely helped us not in only providing or helping us grow our business, but being able to hire more people and grow our business and therefore helping the economy. Because now we're providing other people with job.
The legacy is a long legacy of success for companies, and not only just contractors, but all the companies that the SBA has assisted over those 50 years where companies otherwise may have failed in their endeavors.
It's an important program, I think, for a lot of different partners that we work with and for small businesses as well. So for small businesses, they gain the advantage of access to contracting opportunities. But we also help agents and surety companies. Agents, bond agents have the ability to increase their client base by accessing SBA's bond guarantee program. The Surety Bond Guarantee program is sometimes a very well kept secret, and that's not necessarily a good thing. We want small businesses, we want bond agents and surety companies to know that the Surety Bond Guarantee program is here. We have been here for 50 years. We plan to be here for another 50 years and beyond.
It's keeping so many people employed and able to put food on the table and pay their bills and mortgages. And again, that alone, I think, is just really a cause for celebration.
The SBA Bonding Guarantee program is going to continue to help small businesses gain access to opportunities that they otherwise would not have had. And I have no doubt that they will continue to assist small businesses for another 50 years in the future.
50 years is quite an accomplishment. We've really enjoyed our partnership with you. Our clients have benefited because of you, and we look forward to the years of partnership ahead.
I can't imagine how many small businesses like ours were able to grow. So it's a great accomplishment, not only for the sba, but for all the small businesses that have been involved during those 50 years.
I want the legacy for the Office of Surety Guarantee to show that there is a program that because of a strong partnership with the industry, small business have an opportunity to succeed. It's meeting the mission of the Small Business Administration to help grow and make successful small businesses. Sa.
