Can't Get Bonded? The SBA Just Added 5 Surety Partners for Contracts Up to $9 Million

If a bonding requirement has ever cost you a bid, this matters. The SBA announced on October 5, 2026 that five more surety companies have joined its Surety Bond Guarantee Program, giving small contractors, manufacturers and suppliers more places to get bonded for jobs they might otherwise lose.

What the SBA announced

The agency says five surety companies were approved during fiscal year 2026. The SBA's guarantee backs bid, performance, payment and maintenance bonds issued by participating sureties. Guarantees cover contracts and subcontracts up to $9 million. For certain federal contracts, they can reach $14 million if a federal contracting officer certifies that the guarantee is necessary for the small business to get bonded.

SBA Administrator Kelly Loeffler said the agency is "offering qualified small businesses a fair chance to compete for—and win—public and private contracts." The release also states that "Surety bonds help small businesses compete for and win public and private contracts."

The five new partners

• Merchants National Bonding Inc. (Iowa): A Prior Approval Program aimed at reaching new small and emerging businesses.
• United Fire & Casualty Company (Iowa): A Prior Approval Program with regional underwriting offices and a $7,259,000 Treasury limit.
• RLI Insurance Company (Illinois): A Preferred Surety Bond Program meant to serve its agents and clients and help firms qualify for its standard bonding programs.
• Capitol Indemnity Corporation (Wisconsin): A Prior Approval Program focused on small construction firms until they qualify for standard surety support.
• Platte River Insurance Company (Wisconsin): The same Prior Approval focus on small construction firms.

Why bonding blocks so many small firms

Many public contracts, and a growing number of private ones, require a bond before you can start. A surety company is promising the customer that you will finish the work and pay your subs and suppliers. If your business is young, thinly capitalized or has uneven financials, standard sureties may decline you. The SBA guarantee reduces the surety's risk, which is what makes it willing to say yes.

Trade coverage of the announcement notes the targets: small manufacturers, contractors and suppliers that have struggled to meet surety requirements. SBA's Loeffler framed them as "essential to rebuilding America's industrial base," and the agency points to related efforts including waived loan fees for manufacturers, tailored loan programs and supplier matchmaking events.

What "Prior Approval" and "Preferred" mean for you

The SBA runs its bond program with two tracks. The partners above are described under these names:

• Prior Approval Program: The surety submits each bond to the SBA for approval before issuing it. This is typically the route for firms with less track record.
• Preferred Surety Bond Program: The surety can issue SBA-guaranteed bonds without separate SBA approval of each one, which can mean faster turnaround for firms that already fit the surety's standards.

Ask any surety agent which track your bond would fall under, since it affects how long you wait.

How to use this

1. Find a surety agent who works with the program

The SBA's release does not describe an application process. It points readers to the Surety Bond Guarantee Program page or to suretybonds@sba.gov. In practice, bonds are placed through surety agents or brokers, so start by asking whether they work with the SBA program.

2. Get your paperwork in order first

Sureties look at your financial picture. Have current financial statements ready, including a clean profit and loss statement. Keep business and personal money separate with a dedicated business bank account, and make sure your business license and EIN records are in order.

3. Check your entity and insurance

Sureties often want to know how your company is structured and what coverage you carry. If you are still operating as a sole proprietor, read our guides on forming an LLC and LLC vs S corp, and review your business insurance before you apply.

4. Look at the contract size

The standard guarantee covers contracts up to $9 million. Most small firms will sit far below that ceiling. The $14 million level applies only to certain federal contracts and requires a contracting officer's certification.

Caveats

More partners do not guarantee approval. Competition for contracts remains intense, so you still need to meet the surety's qualifications and stay financially sound. Working with a newer surety partner may also bring bond delays or extra paperwork, according to trade coverage of the announcement. The SBA's release does not list detailed eligibility criteria, so confirm requirements with the program directly.

If you are weighing whether to fund a growth push with borrowing instead, our SBA loan guide explains how that side of the agency works.

The bottom line

Bonding is a gate, and five more companies now hold a key. If you build, make or supply and have been turned away, ask a surety agent this week whether one of these programs fits your next bid.

Photo by Scott Blake on Unsplash