Small businesses will have more contracting opportunities beginning in FY 2017 thanks to a law President Obama signed recently that increases the maximum Small Business Administration surety bond guarantee percentage by 20 percent.
The President signed the National Defense Authorization Act of Fiscal Year 2016 on November 25, 2015. Among other changes, the Act increases the maximum guarantee percentage in the SBA Preferred Surety Bond (PSB) Program from 70 percent to 90 percent.
“This is the first significant legislative change to the surety bond guarantee program in several decades. It will provide increased incentives for surety bond companies and bond producers to participate in the program, which will expand contracting opportunities for small businesses across the country,” said Frank Lalumiere, Surety Bond Guarantee Program Director at SBA.
For more information, click here.
Article originally authored by Pat Brown-Dixon, Region 7 Administrator, SBA