The guarantee on surety bonds for public and private contracts has more than tripled, according to the U.S. Small Business Administration.
Part of the National Defense Authorization Act, the revisions to the SBA's surety bond guarantee program takes the amount to $6.5 million from $2 million. It guarantees bid, performance and payment bonds issued by surety companies.
The higher limits are expected to help construction and service sector small businesses gain greater access to private and public contracts and secure larger contracts, according to the SBA.
The changes also allow the SBA to guarantee bonds for government contracts valued at up to $10 million, if a contracting officer of a federal agency certifies that the guarantee is necessary for the small business to obtain bonding and it is in the best interests of the government.
SBA assistance is available online for those looking to find a participating surety company or agent or to complete an application form.