How Can Bigger Contractor Companies Apply to or Benefit from the SBA Program?


The Small Business Administration’s programs are designed for small businesses, which should make it clear what business can and cannot apply for it. Though the SBA Surety Bonds program isn’t entirely straightforward as you’d think, many bigger businesses can benefit from the SBA, but how would they apply for it?

For a larger business to benefit from the program and successfully apply for it, there are a few steps to take and points to understand in order to achieve the SBA’s help. Read below and discover how even a larger contractor company can enter the SBA program.

Importance of Knowing the SBA Application Process​

The SBA Surety Bond Guarantee program gives contractor companies the opportunity to grow their bonding capacity to where they can bid on larger projects, but if what a larger business needs a jump that a standard surety won’t provide? Sometimes a bigger business is bigger due to growing more quickly than others and a standard surety won’t issue a surety bond that reflects their abilities due to the quick growth. By the surety not issuing bonds that reflects the contractor’s capabilities, it can potentially halt the contractor’s growth.  

The SBA can be a great help here if the business can qualify for it as they have no limit on the total or aggregate bonding program they provide. The only limitations are on the project itself, capped at $6.5 million, and the revenue size standards. If a bigger business fits the parameters, meaning the project they want the SBA to issue surety bonds for, they can benefit enormously from the lenient underwriting, which multiplies the working capital by 20 and includes the available balance on a line of credit in the working capital. 

The SBA program can also help larger contractor businesses when they have fallen on hard times and no longer qualify for the size bonds needed via a standard surety provider. The opportunity to apply for the program allows the business to take on jobs and build the company back to health. This is especially true for those contractors that rely heavily on bid, performance, and payment bonds because, without those, they are out of business.

Download the SBA Surety Bond Program Guide


What is Too Big of a Company?

Here is where the name of the program can be misleading, rather than bending rules or finding loopholes, a contractor only needs the right size job. There are few rules that would prevent even a bigger business from applying for the SBA Surety Bond Guarantee program, the regulations surround the size of the project mainly.
To ensure you meet all the standards for applying, you can find the SBA Size Standards here:

How to Prepare to Apply for the
SBA Bond Program

The most important step to take before applying for the SBA bond program as a larger contractor business is to talk with your surety agent or connect with a surety expert that has extensive experience with the SBA. We at CSBA have had numerous clients, both small business and larger businesses, reap the benefits of working with the Small Business Administration Surety Bond Guarantee Program. We’re able to successfully help you navigate the process and ensure you take the right steps to maximize the benefits of the program.

Introduction to the SBA Surety Bond Program

Below you’ll find answers to commonly asked questions about the SBA’s bond program and articles that can help you with the process, as well as whether or not the SBA bond program is the right program for you.

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