In construction, a surety bond provides contractors, owners or developers with a guarantee that either a contractor will fulfill its contract or funds will be made available for another entity to do so. Hence, a surety bond protects against financial loss. Because of the assurance provided, bonding construction contractors presents several advantages.

Smaller contractors, with little to no experience, find the financial and underwriting requirements to obtain a surety bond, rigorous and confusing. And most inexperienced small businesses do not have all the necessary underwriting items needed for securing a surety bond. Therefore, the need for a Quick Bond Program has become critical to agents and contractors. The SBA (Small Business Administration) guarantee provides an incentive for surety companies to work with small businesses that would normally not be able to obtain surety support.

Allstar Surety, an SBA (Small Business Administration) authorized agent, can help streamline this process under the SBA’s QuickApp program, which is for contracts below $400,000 as well as contractors that are declined from other programs due to low credit scores or other reasons. The streamlined application reduces the normal paperwork to a simple two-page application, and the small business does not need to file any financials with the SBA. Allstar Surety will submit these applications online in order to acquire approval within hours.

A key component of the SBA Quick Bond Program is that there is no minimum credit score. Most quick bond programs that do not require financial documents use a minimum credit score to decline contractors. Utilizing the SBA Quick Bond Program, Allstar Surety can help contractors obtain bonding, even if they have a low credit score. Allstar Surety does still review credit for other issues that may affect the underwriting outcome. Our underwriters are skilled at working with SBA Bond Programs in general as well as other programs to help contractors that have difficulty obtaining bonds or quick bonds.

SBA Quick Bond Application  SBA Statement of Personal History

If you need any assistance in providing a bond for your client please click on the link below and your local Allstar representative will contact you right away.

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