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SBA Recognizes Surety Bond Companies; Increases Bond Guarantees to 90 Percent

Several surety bond companies that are partners with the U.S. Small Business Administration (SBA) in helping small contracting businesses with their surety bond needs were recently honored by SBA’s Office of Surety Guarantees at a ceremony held at the Agency’s headquarters in Washington, D.C.

Michael Konzen, with CCI Surety Inc., was recognized as Surety Agent of the Year. Carol Nevin with Tokyo Marine HCC Company, and Kenneth Turner, Bruce Allen and Greg Allen with KOG International Inc. were also honored as Surety Partner of the Year and Surety Agency of the Year, respectively.

All three firms have excelled in their participation, activity, claims and recovery as well as in their commitment to continue growing and helping small businesses obtain and perform contracts with both government entities and the private sector.

SBA increased its guarantee percentage for bonds issued in the Preferred Surety Bond Program from no more than 70 percent to no more than 90 percent, per Public Law 114-92 of the National Defense Authorization Act of 2016.

SBA guarantees will be 90 percent if the original contract is $100,000 or less, or if the bond is issued on behalf of a small business owned and controlled by socially or economically disadvantaged individuals, veterans, service disabled veterans, or qualified HUBZone and 8(a) businesses. In all other cases, the guarantee will be 80 percent.

The increase will be effective Nov. 25, 2016. The new guarantee limits will expand bonding opportunities for many small businesses. For more information about the Surety Bonds Guarantees Program, please visit https://www.sba.gov/surety-bonds.

http://www.prnewswire.com/news-releases/sba-recognizes-surety-bond-companies-increases-bond-guarantees-to-90-percent-300365404.html