SBA Surety Bond Program Hits Record $10.6 Billion in FY2025

Source: SBA.gov, January 13, 2026

The SBA's Surety Bond Guarantee Program just posted its biggest year ever. According to the SBA, the program guaranteed $10.6 billion in surety bonds in fiscal year 2025 — a 15% jump over FY2024's $9.2 billion. More than 2,200 small businesses got bonded through the program, the highest count in a decade.

If you're a small contractor who's been told you're "too small to bond" or "too new to qualify," the SBA program exists specifically for you. Here's how it works and why the numbers matter.

The Numbers Behind the Record

According to the SBA, the FY2025 results tell a clear story: more small businesses are winning bonded work than at any point in recent memory.

• $10.6 billion in total bond guarantees, according to the SBA (up from $9.2B in FY2024)
• 2,200+ small businesses assisted — highest in a decade, per SBA data
• $3.4 billion in contracts secured by program participants — 19% above the prior record, according to the SBA
• Manufacturing bonds up 36% year-over-year, per the SBA, reflecting federal investment in domestic production

These aren't abstract numbers. Each guarantee represents a small contractor who won a project they couldn't have bid on otherwise.

How the SBA Bond Guarantee Works

The program is straightforward. The SBA guarantees 80% to 90% of a surety company's loss if your bond is claimed against. That guarantee makes sureties willing to bond contractors they'd otherwise decline — businesses with limited financials, short track records, or smaller balance sheets.

Current bond limits, increased in March 2024:

• $9 million for general contracts
• $14 million for federal contracts

Those limits cover performance bonds, payment bonds, and bid bonds. For contracts under the Miller Act threshold, performance and payment bonds are required by law on all federal construction projects over $150,000.

QuickApp: Bonds in About a Day

For contracts up to $500,000, the SBA's QuickApp process cuts the approval timeline to roughly one business day. That's a significant advantage when you're bidding against a deadline.

The streamlined application is available for bid bonds, performance bonds, and payment bonds. You submit basic financial information through an SBA-approved surety agent, and the guarantee decision comes back fast.

What Does It Cost?

The SBA charges a fee of 0.6% of the contract price for performance and payment bonds. Bid bonds through the program are free.

To put that in context: on a $500,000 contract, the SBA fee is $3,000. You'll also pay the surety company's premium on top of that, but the SBA guarantee typically gets you a better rate than you'd qualify for on your own. See our bid bond cost guide for detailed premium breakdowns.

Pending Legislation: S. 2232

Senate bill S. 2232, introduced July 2025, would raise the SBA bond guarantee limit to $20 million. If passed, it would open the program to significantly larger projects — highway construction, major infrastructure work, and large federal facilities.

The bill has bipartisan support and has cleared committee, but it hasn't reached a floor vote yet. We'll update this post when there's movement.

Who Should Use the SBA Program?

The program is designed for small businesses that meet SBA size standards but can't get bonded through conventional channels. That typically includes:

• New contractors with less than 3 years of operating history
• Businesses with limited working capital relative to project size
• Contractors stepping up to larger projects for the first time
• Firms that have been declined by sureties in the standard market

If you've been winning unbonded work and want to compete for bonded contracts — city projects, school districts, state DOT work, federal contracts — this is the program that gets you in the door.

How to Get Started

You apply through an SBA-authorized surety bond agent, not directly through the SBA. The agent submits your application to a participating surety company, which then requests the SBA guarantee.

You'll need basic financials — a balance sheet, income statement, work-in-progress schedule, and personal financial statement. For QuickApp (contracts under $500K), the documentation requirements are lighter.