Great news for small businesses in the contracting world! The Small Business Administration (SBA) recently increased the limits for its Surety Bond Guarantee Program. This means it’s now easier than ever for small businesses to land those big contracts that previously required hefty bonds. Here’s What’s New: The recent program enhancements increased the maximum guaranteed bond amount: Up to $9 million for all projects (previously $6.5 million) Up to $14 million for federal contracts (previously $10 million) This significant increase allows small businesses to compete for a wider range of con ..read more

There are a few reasons why subdivision improvement bonds can be more difficult to obtain compared to other types of surety bonds: Higher risk for the surety: Unlike standard performance bonds that guarantee a specific project’s completion, subdivision bonds cover a wider range of public improvements. These can include roads, sidewalks, utilities, and drainage systems. The surety takes on a bigger risk if the project fails or encounters unforeseen complications. Project complexity: Subdivision developments often involve multiple phases and can take years to complete. This makes it harder for ..read more

The construction industry thrives on efficiency and reliability. Contractors constantly strive to find ways to streamline their processes and secure bonding in a simplified fashion. In this pursuit, Surety1.com’s FastBond program presents itself as a potential game-changer. Let’s delve into what FastBond offers and how it might benefit contractors. Introducing FastBond: FastBond is a program designed to simplify the performance & payment bond application process for construction contractors. It boasts three key features: Reduced paperwork: Instead of the traditional, lengthy applications ..read more

Working capital is the lifeblood of any business. It’s the cash and cash equivalents that a company needs to cover its short-term obligations, such as paying suppliers, employees, and rent. It’s essentially the difference between a company’s current assets (what it owns that can be turned into cash within a year) and its current liabilities (what it owes that needs to be paid within a year). Think of it like this: imagine you’re running a lemonade stand. Your current assets would be your cash on hand, the lemons and sugar you have in stock, and the glasses you use to serve lemonade. Your curre ..read more

H-2A farm labor contractor surety bonds are a crucial aspect of the H-2A program, which allows U.S. agricultural employers to hire temporary foreign workers. This  Comprehensive Guide to H-2A Farm Labor Contractor Bonds will explore everything you need to know about these bonds, including: What are they? An H-2A farm labor contractor surety bond is a type of surety bond that acts as a financial guarantee required by the U.S. Department of Labor (DOL) from anyone acting as an H-2A labor contractor (H-2ALC). It serves as protection for H-2A workers in case the H-2ALC fails to ..read more

There can be several reasons why your construction company might not be able to qualify for more bonding, even if you’re doing well. Here are some potential factors: Financial factors: Limited financial history: If your company is relatively new, you might not have a long enough track record of profitability and strong financial statements to satisfy surety companies. Low working capital: Surety companies want to ensure you have enough cash flow to cover project costs and unexpected expenses. Limited working capital can raise concerns about your ability to complete bonded projects. High debt ..read more

In the United States, a tariff code is a specific number used to classify goods for import and export purposes. It’s officially known as the Harmonized Tariff Schedule (HTS) code. The code is important for anyone who plans import goods into the United States. Knowing the code is required when applying for an Activity 1 (importer) U.S. Customs Bond.  Here are the common situations when you’ll need a tariff code: Importing goods into the US: Customs clearance: To clear goods through customs, you’ll need to provide the correct tariff codes on import documents like the customs declaration. T ..read more

In South Carolina, the new structured settlement surety bond, effective January 1, 2024, is required for structured settlement purchase companies (SSPCs) registered to do business in the state. Any person or entity that engages in the business of purchasing structured settlement payment rights from payees must register as a structured settlement purchase company (SSPC) with the Secretary of State. Here’s a breakdown of who needs the bond: Required for: New SSPCs: Any company entering the structured settlement purchasing market in South Carolina after January 1, 2024, will need to obtain the ..read more

In the dynamic world of construction, Oregon places a strong emphasis on consumer protection. One of the mechanisms employed to safeguard consumers is the requirement for contractors to obtain and maintain a contractor’s license bond. All Oregon Contractor’s License Bonds are increasing by $5,000 effective January 1, 2024. This change was enacted by House Bill 2922, which was passed by the Oregon Legislature in 2023. The bill aims to provide better protection for consumers by increasing the amount of financial recourse available in the event that a contractor fails to fulfill their obligations ..read more

All Oregon contractor’s license bond amounts increase by $5,000 effective January 1, 2024. This change was enacted by House Bill 2922, which was passed by the Oregon Legislature in 2023. The bill aims to provide better  protection for consumers by increasing the amount of financial recourse available in the event that a contractor fails to fulfill their obligations. Here is a table of the new bond amounts for Oregon contractors: Contractor Type Current Bond Amount New Bond Amount Residential General Contractor $20,000 $25,000 Residential Specialty Contractor $10,000 $15,000 Comme ..read more