Surety Bond Guarantee Program Fees

Issuing agencies

Abstract

This document announces a change in the guarantee fees that the U.S. Small Business Administration (SBA) charges all Prior Approval (Plan A) Surety companies and Principals on each guaranteed bond (other than a bid bond) issued in SBA's Surety Bond Guarantee (SBG) Program; with the exception of projects under NAICS Code 31, 32, 33: Manufacturing.

Full Text

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<title>Federal Register, Volume 91 Issue 209 (Friday, October 30, 2026)</title>
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[Federal Register Volume 91, Number 209 (Friday, October 30, 2026)]
[Notices]
[Page 68580]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22177]



[[Page 68580]]

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SMALL BUSINESS ADMINISTRATION


Surety Bond Guarantee Program Fees

AGENCY: U.S. Small Business Administration.

ACTION: Notification of Prior Approval Surety Bond Guarantee Program 
Fee Changes.

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SUMMARY: This document announces a change in the guarantee fees that 
the U.S. Small Business Administration (SBA) charges all Prior Approval 
(Plan A) Surety companies and Principals on each guaranteed bond (other 
than a bid bond) issued in SBA's Surety Bond Guarantee (SBG) Program; 
with the exception of projects under NAICS Code 31, 32, 33: 
Manufacturing.

DATES: Applicability Date: The fee change described in this document 
will apply to all SBA surety bond guarantees approved on or after 
November 30, 2026.

FOR FURTHER INFORMATION CONTACT: Jermaine Perry, Director, Office of 
Surety Guarantees, (202) 401-8275; <a href="/cdn-cgi/l/email-protection#066c63746b676f686328766374747f4675646728616970"><span class="__cf_email__" data-cfemail="3d57584f505c545358134d584f4f447d4e5f5c135a524b">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: Under its SBG Program, the SBA guarantees 
bid, payment and performance bonds for small and emerging contractors 
who cannot obtain surety bonds through regular commercial channels. 
SBA's guarantee gives participating Sureties an incentive to provide 
bonding for small businesses and, thereby, assist small businesses in 
obtaining greater access to contracting opportunities. SBA's guarantee 
is an agreement between a Surety and SBA that SBA will assume a certain 
percentage of the Surety's loss should a contractor default on the 
underlying contract. Pursuant to its statutory authority ``to establish 
such fee or fees for small business concerns and premium or premiums 
for sureties as it deems reasonable and necessary,'' and to administer 
the SBG Program ``on a prudent and economically justifiable basis,'' 15 
U.S.C. 694b(h), SBA assesses a guarantee fee against both the small 
business concern (the Principal) and the Surety and deposits these fees 
into a revolving fund to cover the program's liabilities and certain 
program expenses.
    SBA last changed the fees October 1, 2018, when the fee charged to 
the Sureties was decreased from 26 percent to 20 percent of the bond 
premium and the fee charged to Principals decreased from $7.29 per 
thousand dollars of the contract amount to $6.00 per thousand dollars 
of the contract amount. At that time, SBA determined the program's 
revolving fund was sufficient to cover projected, unfunded liabilities. 
See 83 FR 36658 (July 30, 2018) and 85 FR 62362 (October 2, 2020). SBA 
decreased the guarantee fees temporarily to evaluate the effects of a 
fee reduction and the implications for participating Sureties and SBA. 
Since implementation, the Prior Approval program has operated at a 
funding deficit while the Preferred Surety Bond program has operated at 
a marginal funding surplus.
    SBA's regulations 13 CFR 115.32(b) and (c), and 13 CFR 115.66 
provide that the amount of the fees to be paid by the Surety and the 
Principal ``will be determined by SBA and published in Notices in the 
Federal Register from time to time.'' SBA is announcing the SBA fees 
required for an SBA surety bond guarantee will be the following:

1. Prior Approval Program

    Under 13 CFR 115.32, SBA's Surety fee on guarantees will increase 
from 20 percent of the bond premium to 26 percent of the bond premium 
and the Contractor fee on guarantees will increase from $6.00 per 
thousand dollars of the contract amount to $7.29 per thousand dollars 
of the contract amount. Except for bond guarantees on projects under 
NAICS Code 31, 32, 33 ``Manufacturing'' which will receive the 
following rates: SBA's Surety fee on guarantees will remain 20 percent 
of the bond premium and the Principal fee on guarantees will remain 
$6.00 per thousand dollars of the contract amount.

2. Preferred Surety Bond Program

    Under 13 CFR 115.66, SBA's Surety fee on guarantees will remain 20 
percent of the bond premium and the Principal fee on guarantees will 
remain $6.00 per thousand dollars of the contract amount.
    Authority: 15 U.S.C. 694b(h), 13 CFR 115.32(b) and (c), and 115.66.

Thomas Kimsey,
Associate Administrator, Office of Capital Access.
[FR Doc. 2026-22177 Filed 10-29-26; 8:45 am]
BILLING CODE 8026-09-P


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