BONDING ASSISTANCE PROGRAMS ::  A surety bond is a three-party instrument in which one party (the surety) guarantees to a second party (the obligee) the performance of a contract by a third party (the principal).  Government contracts sometimes require contractors to present a surety bond as a pre-requisite to doing business.  Surety bonds are particularly important in the construction industry, where the government seeks protection from the possibility of failure by contractors working on large capital projects.

Small, minority- and women-owned businesses have a history of difficulty in obtaining surety bonds, largely because they are viewed as a higher risk by surety bond producers and underwriters.  This is where government programs step in to provide assistance.  The two principal programs currently in place are the DOT Bonding Assistance Program and the SBA Surety Bond Program.  Click here for more information about these and other small business surety bonding resources.