The SBA guarantees surety bonds
How the SBA Surety Bond Program works
Contract or commercial bonds
Depending on the the type of work, a business may be required to obtain a contract bond or a commercial bond.
The SBA guarantees contract bonds, but doesn’t guarantee commercial bonds. Contract bonds ensure the terms of a specific contract are fulfilled. Commercial bonds ensure all applicable laws and regulations are followed. Government agencies require certain companies or individuals to obtain commercial bonds, which protect the general public against things like fraud.
The right surety bond for the project
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