SBA Added Five Surety Companies to Bond Program
The Small Business Administration expanded its network of surety partners to increase project access for small firms.
Updated on Oct. 5, 2026 in Construction
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The U.S. Small Business Administration has approved five new surety companies to participate in its Surety Bond Guarantee Program during fiscal year 2026. This expansion intends to broaden bond access for small businesses working in the construction, manufacturing, and supply-chain sectors.
Why it matters
The program provides critical bond guarantees for small businesses that might otherwise struggle to qualify for projects. By adding these insurers, the agency aims to simplify the process for firms seeking to compete for federal and commercial contracts.
The SBA offers standard contract bond guarantees up to $9 million, with increased capacity for certain federal contracts up to $14 million. United Fire & Casualty Company, one of the new partners, maintains a Treasury limit of $7,259,000.
The players
Small Business Administration
This federal agency provides support to U.S. small business owners and entrepreneurs through loans, contracting assistance, and investment capital.
Merchants National Bonding Inc.
This is a surety company that has joined the SBA's Prior Approval Program to assist small businesses with bond requirements.
United Fire & Casualty Company
Headquartered in Iowa, this company has joined the SBA program to help facilitate surety bonding for small firms.
RLI Insurance Company
This insurance provider has joined the Preferred Surety Bond Program to support federal and commercial contracting opportunities.
The details
New entrants to the Prior Approval Program include Merchants National Bonding Inc., United Fire & Casualty Company, Capitol Indemnity Corporation, and Platte River Insurance Company, while RLI Insurance Company joined the Preferred Surety Bond Program. These entities will help provide the financial backing necessary for small enterprises to secure essential project bonds.
Timeline
The five new surety companies were approved during fiscal year 2026.
Market Landscape
The expansion follows a pattern set by the SBA Surety Bond Guarantee Program to increase project capacity for smaller vendors. It reflects a competitive shift to integrate more private insurers into federal backing systems to address construction and manufacturing supply-chain needs.
Small business owners in the construction and manufacturing sectors may find it easier to secure the required surety bonds for new contracts. This expanded network of partners provides more options for firms that previously lacked the track record to obtain standard commercial bonding.
The takeaway
Small businesses should evaluate their current bonding needs against the updated list of participating sureties to determine if these new options streamline their application process. Strengthening bond availability can significantly impact the ability of smaller firms to compete for larger federal projects.
Further reading
Learn more about federal requirements by visiting the Construction section.
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Do you believe government-backed bond guarantees help small businesses in your area compete for contracts?
