NEWS
BYTES
February 2001
Editor:
Scott Gottlieb, CPA
Assistant editor: Susan A. Maffetone, CPA
Surety Bond Maximum increased to
aid small contractors
The U.S. Small Business Administration announced February
16th that they have has increased the maximum size of
the surety bonds it can guarantee for small businesses.
Statutory changes to SBA’s Surety Bond Guarantee Program
now allow guarantees on bonds up to a maximum of $2
million, up from $1.25 million, for small and emerging
contractors who cannot obtain surety bonds through regular
commercial channels..
Changes to the Surety Bond Guarantee Program were signed
into law on December 21, 2000.
SBA guarantees from 70 percent to 90 percent of losses
incurred by surety companies in the event of a contractor’s
default on contracts not exceeding $2 million.
Visit the U.S.
Small Business Administration website for more information.
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