SBA Adds Five New Surety Bond Partners for Small Businesses Competing for Contracts

WASHINGTON - Today, the U.S. Small Business Administration (SBA) announced that five new surety companies were approved during fiscal year 2026 to participate in its Surety Bond Guarantee (SBG) Program. The expanded network will increase access to surety bonds for small businesses in construction, manufacturing, and supply-chain industries. Surety bonds help small businesses compete for and win public and private contracts by providing the customer with a guarantee that the work will be completed.

"Small manufacturers, contractors, and suppliers are essential to rebuilding America's industrial base, but too often they are held back from pursuing major projects because they cannot obtain the bonding those contracts require," said SBA Administrator Kelly Loeffler. "By adding five new surety partners, the Trump SBA is expanding the capacity of our Surety Bond Guarantee Program, offering qualified small businesses a fair chance to compete for-and win-public and private contracts. The expanded network will help manufacturers and contractors obtain bonds for facility expansions, industrial repairs, infrastructure improvements, and the delivery of American-made products."

Through its Surety Bond Guarantee Program, the SBA provides a guarantee on surety bonds for participating surety companies, which allows them to offer surety bonds to small businesses that might not meet the criteria for other sureties. Surety bonds can support qualified small businesses pursuing a range of contracts, including contracts associated with construction, manufacturing, fabrication, and industrial facilities. For example, contractors and fabricators may seek bonds for projects involving new facilities, expansions, repairs, infrastructure improvements, or the delivery and installation of manufactured components.

The SBA's Office of Surety Guarantees provides guarantees for bid, performance, payment, and maintenance bonds issued by participating surety companies for contracts and subcontracts up to $9 million. For certain federal contracts, SBA can guarantee bonds up to $14 million when a federal contracting officer certifies that the guarantee is necessary for the small business to obtain bonding.

The five new surety partners admitted in FY26 are:

• Merchants National Bonding Inc., domiciled in Iowa, joined SBA's Prior Approval Program to increase its reach to new small and emerging businesses.
• United Fire & Casualty Company, domiciled in Iowa, also joined SBA's Prior Approval Program to support small businesses. United Fire & Casualty Company's regional underwriting offices and $7,259,000 Treasury limit will allow the surety to support many small firms requiring SBA assistance.
• RLI Insurance Company, domiciled in Illinois, joined SBA's Preferred Surety Bond Program to enhance service to its agents and small business clients. RLI's objective is to support a firm's immediate bonding needs while helping small businesses progress toward qualification under RLI's standard bonding programs.
• Capitol Indemnity Corporation and Platte River Insurance Company, both domiciled in Wisconsin, joined the Prior Approval Program to focus on small businesses to broaden their reach to small construction firms. These CapSpecialty companies intend to support small businesses until they have gained additional experience and improved financial standing to qualify for standard surety support.

The SBA has committed to rebuilding American supply chains and domestic manufacturing through a series of targeted initiatives. This year, the agency waived loan fees for manufacturing NAICS codes, established the first-ever loan program dedicated to American manufacturers. The agency also announced a new 90% Made in America Loan Guarantee for small manufacturers and continues to promote existing programs such as the asset-based 7(a) Working Capital Pilot (WCP) Program. Through its ongoing Supplier Matchmaking Expo series and its Make Onshoring Great Again Portal, the agency has also played an active role in helping large companies source small suppliers to onshore supply chains across industries.

To learn more, see SBA's Surety Bond Guarantee Program or contact [email protected].

# # #

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.