Read the latest news regarding Commercial, License, Permit, Contract, Court and Fidelity Surety Bonds, and how upcoming changes will affect your business. Check out our glossary page for more information on Surety Bond terminology.
Key Takeaways A bid bond guarantees a contractor will honor its bid and secure the required performance and payment bonds if awarded the project. A bid guarantee is only required under FAR Part 28 when a performance bond or performance and payment bond will also be required, tying all three bonds to the same federal … Continue reading “How Bid, Performance, and Payment Bonds Work Together on a Single Project”
Read MoreBy definition, Mortgage Broker Bond (also known as Finance Lender Broker Bonds/ Mortgage Lender Bonds) is form of insurance that protects a customer from illegal or unethical activities on the part of the mortgage broker.
Read MoreKey Takeaways The SBA guarantees a percentage of every SBG program bond to the surety, reducing the surety’s exposure enough to approve contractors who can’t qualify through standard markets. In fiscal year 2025, the SBG program backed a record $10.6 billion in small business surety bonds and supported more than 2,200 contractors. The SBA raised … Continue reading “The SBA Surety Bond Guarantee Program: A Guide for Small Businesses”
Read MoreKey Takeaways Performance and payment bonds typically cost 1% to 3% of the contract value for well-qualified contractors, though flat rates for credit-challenged applicants can push that closer to 2% or higher, plus an additional fee if SBA backing is involved. The Miller Act’s operative threshold for federal construction contracts is $150,000, not the $100,000 … Continue reading “Performance and Payment Bonds: Costs, Uses, and How to Calculate Them”
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