Government Relations Update

SBA Increases Contract Size Limits

NASBP CEO Mark McCallum with Jermaine Perry and Tamara Murray of the SBA Surety Bond Guarantee ProgramOn March 18, the maximum contract size bond amount for the U.S. Small Business Administration’s (SBA) Surety Bond Guarantee Program will increase from $6.5 million to $9 million for inflationary adjustments. In addition, the maximum contract limit for federal contracts will increase from $10 million to $14 million, providing a federal contracting officer certifies that such a guarantee is necessary. NASBP supported the regulatory changes, which are necessary to bolster the Program’s participation among small and emerging contractors, surety bond producers, and surety companies. This revision will provide greater opportunities for small and emerging contractors in obtaining bonding to bid on public and private projects and to grow their respective businesses to align with the passage of the Infrastructure Investment and Jobs Act (IIJA). NASBP has a successful long-term working partner relationship with the SBA Office of Surety Guarantees and thoroughly believes that the Program provides a valuable service to those emerging contractors who may otherwise fail to qualify for surety credit in the standard market.  

Pictured, from left, at the 2023 NASBP Annual Meeting: Mark McCallum, NASBP CEO, Tamara Murray, Underwriting Marketing Specialist with SBA Surety Bond Guarantee Program, and Jermaine Perry, Director of the SBA Office of Surety Guarantees.

U.S Customs and Border Protection Revises Bond Amount

Recently, U.S. Customs and Border Protection (CBP) revised its guidelines on addressing minimum bond amounts for all types of bond obligations in its "A Guide for the Public: How CBP Sets Bond Amounts." This has been an issue the industry has actively engaged in for nearly a decade. The Guide made significant changes including the following: Custodian of Bonded Merchandise Bond: $25,000.00; International Carrier Bond: $50,000.00; Foreign Trade Zone Bond: $50,000.00; and Airport Security Bond: $25,000.00. This issue will be highlighted in future NASBP publications. For more information, read the NASBP Blog by John Sheppard of NASBP Member C.A. Shea & Company, Inc. of Chester, NJ.