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 data center construction bond is a performance, payment, or bid bond that guarantees a contractor completes a data center project and pays its subcontractors. Prequalification for hyperscale subcontractors now commonly starts at $10 million or more in bonding capacity per project. Sureties are underwriting data center work more strictly, weighing financial documentation, … Continue reading “Data Center Construction Bonds: How AI Infrastructure Is Changing Requirements”
Read MoreKey Takeaways A good surety bond partner is properly licensed, works with multiple A-rated carriers, and treats hard-to-place risk as a problem to solve rather than a reason to decline. A broker who works with both direct clients and referring agents should be able to explain clearly how they keep those relationships separate, so ask … Continue reading “Surety Bond Brokers and Programs: 6 Tips to Find the Right Partner”
Read MoreKey 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”
Read MoreWhen applying for your Florida Motor Vehicle Dealer Bonds, you’ll need to first decide which type of Florida Motor Vehicle Dealer Bonds you’ll need.
Read MoreYou’ve probably seen it dozens of times, whether on a contractor’s truck door, in a vendor profile, or buried in a licensing requirement you didn’t expect. “Licensed, bonded, and insured.” Three words that get used together constantly but rarely get explained separately. For most people, “bonded” is the one that doesn’t quite land. To ensure … Continue reading “What Does It Mean to Be “Bonded”?”
Read MoreWhen a project owner hands you a contract and asks for proof of financial security, two options usually come up: post a performance and payment bond, or provide an irrevocable letter of credit. On the surface, the letter of credit can seem like the more straightforward path. Look closer, though, and the picture changes. For … Continue reading “Why Posting a Performance and Payment Bond Is Better Than an Irrevocable Letter of Credit”
Read MoreContractors navigating their first bonded project often assume a surety bond works something like a loan, with a bonding company fronting money they’ll pay back over time. It’s an understandable assumption. Both involve financial commitments, both require an application and approval process, and both can determine whether a contractor gets the job. The similarity ends … Continue reading “Is a Surety Bond a Loan? How Bonding and Financing Actually Work”
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