Surety Bonds for Contractors



Small Business Administration Federal
A surety bond makes sure that a contract is completed if a contractor defaults.

A contractor can get a surety bond from a company. If the contractor default, the surety company must find another contractor to complete the project. Otherwise, the client must receive compensation for any financial loss.

Four types of bonds exist. Bid bonds make sure bidders enter contracts. Payment bonds make sure contractors pay suppliers and subcontractors. Performance bonds make sure that projects are completed. Ancillary bonds cover other aspects of a contract.

The U.S. Small Business Administration (SBA) helps small businesses obtain surety bonds.

Additional resources

For more information, contact:

US Small Business Administration
Office of Surety Guarantees
409 Third Street S.W.
Suite 8600
Washington, DC 20416
Phone: (202) 205-6540
[email protected]

TTY/TTD: 800-877-8339


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