Small contractors who rely on federal help to get bonded will pay more for each guaranteed bond starting Nov. 30, 2026. The U.S. Small Business Administration is raising the fees on its Prior Approval surety bond guarantees for guarantees approved on or after Nov. 30, 2026, reversing a fee cut that has been in place since 2018.
The change was announced in the SBA's Oct. 30 Federal Register notice on Surety Bond Guarantee Program fees, document 2026-22177. For South Florida builders chasing county, school district and municipal work, the notice changes the cost of a bond on every contract that runs through the Prior Approval track.
How much are SBA surety bond guarantee fees rising on Nov. 30?
For Prior Approval guarantees approved on or after Nov. 30, 2026, the contractor fee rises from $6.00 to $7.29 per $1,000 of contract amount, and the surety fee rises from 20 percent to 26 percent of the bond premium. Bid bonds stay free, and manufacturing projects and the Preferred Surety Bond program keep the current rates.
What the SBA Surety Bond Program Does
The SBA's Surety Bond Guarantee Program backs bid, payment and performance bonds for small and emerging contractors who cannot get bonds through regular commercial channels, according to the notice. The guarantee is an agreement between a surety company and the SBA: if a contractor defaults, the SBA covers a set share of the surety's loss. That promise gives sureties a reason to bond smaller firms they might otherwise turn away.
Bonds are a gate to public work. Many government construction contracts require a bid bond to compete and payment and performance bonds to sign, so a small firm without bonding capacity can be shut out of jobs it could otherwise perform.
The New Fees in Detail
The notice sets out the new charges under the SBA's rules at 13 CFR 115.32 and 115.66:
- Prior Approval program, contractor (principal) fee: rises from $6.00 to $7.29 per $1,000 of contract amount.
- Prior Approval program, surety fee: rises from 20 percent to 26 percent of the bond premium.
- Prior Approval bonds on manufacturing projects under NAICS codes 31, 32 and 33: stay at $6.00 per $1,000 and 20 percent of premium.
- Preferred Surety Bond program: stays at $6.00 per $1,000 and 20 percent of premium.
- Bid bond guarantees: still no fee.
The new fees apply to all SBA surety bond guarantees approved on or after Nov. 30, 2026, the notice says.
What the Change Costs on a Real Contract
The contractor fee is figured on the contract amount, so the math is direct. On a $500,000 contract, the current fee of $6.00 per $1,000 is $3,000. At $7.29 per $1,000, the same contract carries a $3,645 fee, an increase of $645.
On a $1 million contract, the fee rises from $6,000 to $7,290. On a $2 million contract, it rises from $12,000 to $14,580. The SBA's surety bonds page describes the contractor fee as 0.6 percent of the contract price, which matches the $6.00 per $1,000 rate; the new rate equals 0.729 percent.
The surety fee is paid by the surety company, not directly by the contractor, and it is a share of the bond premium the surety charges. Whether a surety passes any of its higher SBA fee through in its pricing is a business decision for each surety, and the notice does not address it.
Why the SBA Is Raising the Fees
The notice explains the history. The SBA last changed the fees on Oct. 1, 2018, when it cut the surety fee from 26 percent to 20 percent of the premium and the contractor fee from $7.29 to $6.00 per $1,000. The agency said at the time that its revolving fund could cover projected liabilities, and it described the reduction as a test of how lower fees would affect sureties and the program.
Since then, according to the notice, the Prior Approval program has operated at a funding deficit while the Preferred Surety Bond program has run a marginal funding surplus. The new Prior Approval fees return to the levels in place before 2018. Fees go into a revolving fund that covers the program's liabilities and certain expenses.
Prior Approval Versus Preferred Sureties
The fee change hits only one of the two tracks, so it helps to know which one a bond uses.
- In the Prior Approval program, the SBA reviews and approves each guarantee before the bond is issued. This is the track where fees are rising.
- In the Preferred Surety Bond program, sureties that the SBA has approved for the program can issue guaranteed bonds without the SBA's prior approval of each bond, under Subpart C of the agency's rules. Fees there are not changing.
Contractors usually do not choose the track directly. It depends on the surety company and agent they work with. A contractor bidding on work after Nov. 30 can ask its agent which program its bonds run through and what the SBA fee will be.
Timing Matters Before Nov. 30
The applicability date is tied to when the SBA approves the guarantee, not when a contract is signed. Guarantees approved before Nov. 30 carry the current fees. Contractors with near term bids that will need final bonds may want to talk with their surety agent about timing before Nov. 30.
The SBA's rules add two details. The contractor fee is rounded to the nearest dollar and is sent to the SBA with the required form. If a bond is canceled or never issued, the SBA's surety bonds page says the agency will return the guarantee fee.
Change Orders and Contract Increases
Larger jobs often grow after award, and the rules cover that too. Under 13 CFR 115.32, a Prior Approval surety must tell the SBA when increases or decreases in the contract or bond amount add up to 25 percent or $500,000 of the original amount, whichever is less. The added contractor fee is figured on the increase in the contract amount.
If the increase in the contractor fee is less than $250, no payment is due until the total of the increases reaches $250. Contractors with growing jobs should keep track of change orders so they are not surprised by a fee notice later.
What South Florida Contractors Should Do
A short list covers most firms:
- Ask your surety agent whether your bonds run through Prior Approval or Preferred Surety, since only Prior Approval fees are rising.
- Price the new $7.29 per $1,000 fee into bids for work that will be bonded after Nov. 30.
- Check whether your project falls under manufacturing NAICS codes 31 to 33, which keep the current rates.
- Track change orders on bonded jobs, since fee increases follow contract increases.
- Remember that bid bond guarantees still carry no SBA fee.
For firms working toward county set aside contracts, bonding capacity often decides how large a job they can take. Broward County's County Business Enterprise program is one example where small firms compete for public work that may require bonds.
Who to Contact
The Federal Register notice lists the SBA's Office of Surety Guarantees as the contact for questions, at 202 401 8275. Contractors can also find program details, eligibility rules and fee information on the SBA's surety bonds page.
Get the Weekly Deadlines List
The Nov. 30 fee change is one of several money dates for owners in November. Subscribe to the Sundaze Gazette newsletter for a weekly list of deadlines for South Florida contractors and owners.
Sources
- Federal Register, Surety Bond Guarantee Program Fees, Oct. 30, 2026 (91 FR 68580)
- eCFR, 13 CFR 115.32, fees and premiums
- eCFR, 13 CFR Part 115 Subpart C, Preferred Surety Bond program
- U.S. Small Business Administration, surety bonds
Related
- MAP Broward small business contracts and the CBE 30 percent guide
- FPL's 8 GW data center target: a Florida contractor guide
- Sundaze Gazette newsletter
Key Facts for Owners and Search
When do the new SBA surety bond guarantee fees take effect?
The new fees apply to all SBA surety bond guarantees approved on or after Nov. 30, 2026, according to the SBA's Oct. 30 Federal Register notice, document 2026-22177. Guarantees approved before that date keep the current fees. The change affects the Prior Approval program, not the Preferred Surety Bond program or bid bonds.
How much is the new SBA contractor fee on a surety bond?
For Prior Approval guarantees, the contractor fee rises from $6.00 to $7.29 per $1,000 of contract amount. On a $500,000 contract, that raises the fee from $3,000 to $3,645. On a $1 million contract, it rises from $6,000 to $7,290. Bid bond guarantees still carry no SBA fee.
What is the new SBA surety fee for surety companies?
The surety company's fee on Prior Approval guarantees rises from 20 percent to 26 percent of the bond premium. The surety pays this fee to the SBA within 60 days after the SBA approves the guarantee. The notice does not say whether sureties will pass any of the higher fee on to contractors.
Which SBA surety bonds keep the old fees?
Bonds in the Preferred Surety Bond program keep the current fees of 20 percent of premium and $6.00 per $1,000 of contract amount. Prior Approval bonds on manufacturing projects under NAICS codes 31, 32 and 33 also keep those rates. Bid bond guarantees remain free under the SBA program after Nov. 30.
Why is the SBA raising surety bond guarantee fees?
The SBA cut the fees on Oct. 1, 2018, as a test of lower pricing. Since then, the notice says, the Prior Approval program has run at a funding deficit while the Preferred program ran a marginal surplus. The new Prior Approval fees return to the 26 percent and $7.29 levels in place before 2018.
