Expanding the Surety Bond Program Act of 2025

Key Points

• This bill increases the maximum size of a contract that the Small Business Administration can guarantee through its surety bond program. The limit would jump from $6.5 million to $18 million, allowing small businesses to bid on much larger construction and service projects.
• Surety bonds are like insurance policies that guarantee a business will finish a job. Many small businesses cannot get these bonds on their own, so the government steps in to back them up. By raising the limit, the bill helps small firms compete with bigger companies for major projects.
• To protect taxpayers, the bill includes a safety trigger. If the program needs extra money from Congress to stay afloat, the $18 million limit will automatically drop by one third until the program's finances are stable again.
• The Small Business Administration will now be allowed to use a small portion of the program's fund to pay for administrative costs. This includes updating computer systems and reaching out to more small business owners to let them know about the program.
• The government will also look for ways to make the program easier to use. A watchdog agency will study how to cut down on paperwork and make the application process faster for busy small business owners.

Impact Analysis

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