Montana Small Business Administration (SBA) Guarantee Program Surety Bonds

What is the Small Business Administration (SBA) Guarantee Program?

Small and emerging contractors are sometimes required by the project owner (generally a governmental agency) to obtain a surety bond. While the contractor may have the skill and knowledge to pursue certain projects, they may lack the experience or financial strength required by surety companies to provide the bond within reasonable terms and conditions. The SBA Bond Guarantee Program provides assistance in overcoming this hurdle.

Are SBA Guarantee Program Bonds different from other Surety Bonds?

SBA Guarantee Program Surety Bonds differ from other bonds only in that the SBA provides a guarantee to certain sureties that participate in their Bond Guarantee Program, enabling them to overcome certain underwriting shortfalls and support the required bond.

How much do SBA Guarantee Program Surety Bonds cost for the contractor?

In addition to the premium the Surety Company charges the SBA charges a fee of .6% of the contract price.

What size projects does the SBA Bond Guarantee Program support?

The program will consider projects up to $6,500,000 for non-federal projects, and will increase that amount up to $10,000,000 for federal contracts.

What information is needed to obtain a SBA Guarantee Program Bond?

Underwriting requirements are similar to what sureties require outside the SBA Guarantee Program.

  • Past Three Years of CPA-prepared financial statements
    – Under the program, internally prepared statements are accepted for jobs up $500,000.
    – For projects up to $1,000,000, a CPA compilation is acceptable.
    – For projects over $1,000,000, a CPA review is required.
  • Current personal financial statements
  • WIP (work in progress)
  • Current bank line of credit
  • Contractors questionnaire
  • Current certificate of insurance


Pacific Surety Proudly offers Small Business Administration (SBA) Guarantee Program Surety Bonds in the following states:

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