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119-s-2232119th CongressWALLET

Expanding the Surety Bond Program Act of 2025

Sponsored By: Senator Markey, Edward J. [D-MA]

Passed Senate

Summary

Expands the SBA Surety Bond Guarantee Program. The bill raises the program's maximum aggregate guarantee from $6.5 million to $18 million and reorganizes the SBA Surety Bond Guarantee Programs with risk-based adjustments to how guarantees are applied.

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  • Small businesses and contractors: Greater aggregate guarantees let firms pursue larger bonded contracts backed by the SBA.
  • Surety companies and program administrators: Risk-based adjustments and the reorganization change how guarantees are structured and assessed.
  • Federal contracting: Higher guaranteed limits increase the SBA-backed bond amounts available to contractors bidding on bigger projects.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Higher SBA bonds but temporary reduction

This bill would raise the SBA surety bond guarantee limit from $6,500,000 to $18,000,000. If the SBA asks Congress for supplemental funds under section 412(d), the limit would drop by 33% to $12,060,000. The lower limit would last until the earlier of 12 months after the request, or 150 days after funds arrive and the SBA attests fee collections keep the fund deficit‑neutral, or after the SBA says funds are not needed and makes the same attestation. After that, the limit would return to $18,000,000. The SBA Administrator would also need to notify the Senate and House Small Business Committees on the same day any committee is told that supplemental funds are needed.

Tighter oversight of SBA surety program

This bill would cap SBA fund administration at 2% of the fund’s balance on the first day of each fiscal year. That cap would cover management, IT systems, outreach, and related contracts. The SBA would need to send Congress a report each year, within 90 days after the fiscal year starts. The report would show total guarantees (overall and by program), claims paid (overall and by program), average bond size, any bonds over program limits, fund balance, cash flow, admin costs, and how many sureties participate. The Government Accountability Office would also need to review SBA approval processes and report within 270 days after enactment, with ideas to speed approvals and cut paperwork.

Sponsors & CoSponsors

Sponsor

Markey, Edward J. [D-MA]

MA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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