Expanding the Surety Bond Program Act of 2025
Sponsored By: Senator Markey, Edward J. [D-MA]
Passed Senate
Summary
Expands SBA bonding capacity by raising the maximum single-bond guarantee from $6.5 million to $18 million and adding a temporary one-third reduction when the SBA requests supplemental funds. It also limits admin spending, forces annual financial reporting, and requires a GAO review to boost oversight.
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- Small businesses: Bigger bonding capacity could let companies compete for larger contracts with a new $18 million ceiling, though that ceiling would drop to about $12.1 million (a 33% cut) in fiscal years when the SBA seeks supplemental funds.
- SBA and surety firms: The bill lets the Small Business Administration obligate up to 2% of the fund for management and administration each year and requires the agency to notify House and Senate small business committees when it needs supplemental funding.
- Oversight and transparency: The SBA must file a detailed report within 90 days of each fiscal year start on fund health, guarantees, claims, and costs, and the Government Accountability Office must review approval processes within 270 days of enactment.
*Designed to be deficit-neutral by tying temporary limits and supplemental fund needs to fee collections and formal attestations.*
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Bigger bonds for small businesses, with trigger cut
This bill would raise the maximum SBA-backed surety bond to $18 million, up from $6.5 million. Small businesses would be able to bid on larger projects with an SBA guarantee. If the Administrator formally requests supplemental funds, the cap would drop by 33% to $12.06 million. The lower cap would end 12 months after the request. It would also end 150 days after funds are provided and the Administrator attests fees keep the fund deficit-neutral, or after the Administrator attests funds are not needed and fees keep the fund deficit-neutral. After that, the cap would return to $18 million.
Limits on surety program overhead spending
Each year, overhead charged to the revolving fund would be capped at 2% of the fund’s balance on the first day. This would cover management, IT, outreach, and related contracts. The bill would also delete language that excluded administrative expenses. That change would let more admin costs be paid from the fund, but still within the 2% cap.
More reports and faster funding notices
The SBA Administrator would send an annual report within 90 days after each fiscal year starts. It would show totals of guarantees, claims paid, fund balance, cash flow, administrative expenses, and counts of sureties. When asking for supplemental funds, the Administrator would also notify the two small business committees the same day. GAO would review SBA approval processes within 270 days after enactment and recommend ways to reduce 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