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

The SBA guarantees will be 90% 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%.

The new guarantee limits will expand bonding opportunities for many small businesses.