Administrators need to get teachers’ buy-in when changing, like switching to standards-based grading. This can be done in various ways, including professional learning communities.
SBA’s Surety Bond Guarantee Program guarantees bid, performance, and payment bonds for contracts ineligible for a small business. This interim final rule amends the size standard for construction and service concerns seeking SBA guarantees.
Increased Competitiveness in the Government Contracting Marketplace
The federal government is one of the world’s largest consumers of products and services. Breaking into this market carries many benefits but also unique challenges. To help address these challenges, the government has created programs and policies to increase opportunities for small and emerging businesses.
For example, the Program reserves 3% of federal contract dollars for businesses that qualify under the government’s size standards and are located in designated geographic areas. The government also limits competition for specific contracts to small businesses by defining them as small business set-asides. These opportunities are posted on the System for Award Management (SAM) website.
Developing pricing strategies that reflect your business’s experience, capabilities, and uniqueness can effectively stand out in the government contracting marketplace. This can help your company win competitive price awards and avoid losing a bid to a larger competitor.
Increased Revenue Potential
The SBG program allows contractors to bid on and undertake construction projects that would be out of reach without bonding support. This helps grow their business and increases their revenue potential.
The SBA it sought comment on which of its regulations relating to the SBG Program should be repealed, replaced, or modified because they are obsolete, unnecessary, ineffective, or burdensome. SBA expects these revisions will help reduce costs for sureties and small businesses that receive SBG-guaranteed bonds.
For performance and payment bonds, SBA charges a fee of 0.6% of the contract price to guarantee the bond. This is in addition to the bond premium the underlying surety company charges. The SBG program also provides set-aside funding for certain small, emerging contractors. It helps increase their capacity to access the bond market and bid on government contracts that require them. This is especially advantageous for businesses still establishing a reputation for completing projects.
Increased Reputation and Credibility in the Industry
SBG programs enable contractors to bid on projects that they might have yet to be able to qualify for through the traditional surety bond underwriting process. These bonds benefit small, new contractors with little to no expertise with bonded projects and must establish a portfolio of completed work.
To receive the benefits of the SBG program, contractors must apply through an authorized agent. The program requires that contractors certify that they cannot obtain the necessary bond on reasonable terms and conditions without the SBA’s guarantee.
Only a select few long-term success indicators for the SBG program are outcome-driven and accurately reflect its goals. For example, the program’s annual output goals — bid and contract bonds — are measured to show progress toward SBA’s Strategic Plan goal of assisting small contractors. These outputs are then compared to other government contracts to measure the impact of the SBG program on contractor survivability, revenue growth, and job creation.
Increased Access to Funding
As a result of the SBG program, contractors can leverage a guarantee from the US government to expand their bonding capacity. This is a significant benefit for small or emerging contractors who need more financial strength or track record to qualify for bonds in standard surety markets.
Additionally, this program significantly reduces the underwriting standards for financial review. For example, most traditional surety companies require CPA-reviewed or audited financial statements that meet specific criteria for working capital (current assets less current liabilities), net worth, profitability, and more.
The SBA program can help your small business. They are a nationally authorized agent for the SBA’s SBG program and can help you get approved for the bond you need to grow your business and secure a successful future in the contracting industry.