$1.2 Billion in Contracts Awarded to Small Construction Firms in 2013
Story Below from Times Record News
With the help of the Small Business Administration’s Surety Bond Guarantee Program, small construction firms were awarded in fiscal year 2013 more than $1.2 billion in contracts, the SBA reported. This number represents a 61 percent increase over fiscal year 2012.
The SBA also guaranteed bonds for public and private contract bids valued at $4.9 billion, resulting in a total contract amount of more than $6.1 billion.
“The Surety Bond Guarantee program, along with our loan programs, provides small businesses with significant opportunities to grow and create jobs, which translates into stronger local economies,” said Ann Marie Mehlum, SBA Associate Administrator for the office of Capital Access, which oversees the SBG program. “2013 was a banner year and we look forward to an even better 2014 helping small businesses bid for and obtain contracts.”
The SBA guarantees bid, performance and payment bonds issued by surety companies. This guarantee encourages surety companies to bond small businesses who are having difficulty obtaining bonding on their own. For the past seven years, the Surety Bond program maintained a steady upward trend in every key measure, including the number of bond guarantees issued, contract dollars awarded to small businesses and number of small businesses assisted. To assure continued growth of the program, SBA implemented several enhancements geared toward streamlining the underwriting process and providing easier access for surety companies in the eastern part of the country.
The Quick Bond Guarantee Application can be used for contracts valued at $250,000 or less and reduces the majority of paperwork and other underwriting information required of sureties and small businesses on larger contracts. The Quick App allows SBA and surety companies to issue bonds faster for small businesses.
CCI Surety – SBA Surety Bond Guarantee Program Leader
In 2012 CCI Surety was the SBA National Surety Bond Producer of the Year. CCI Surety has continued to be a leader in SBA Business and has been a positive force in shaping the SBA Surety Bond Guarantee Program into a program that is more accessible and applicable to projects that small construction firms typically bid on. Make sure you are working with sureties and agencies that are adept at utilizing the SBA Surety Bond Program.
For more general information, visit the SBA website.