SBA Form 990 Surety Bond Guarantee Agreement Terms and Conditions of

OMB Control No: 3245-0007
Expiration Date:
U.S. SMALL BUSINESS ADMINISTRATION

SURETY BOND GUARANTEE AGREEMENT
Terms and Conditions of Agreement on Page 2
1. Surety Name

2. Business Name:

3. Co-Surety Name + Percentage

Business Trade Name:
4. Principal’s Address:
Street:

5. Principal’s Name

City, State, Zip and County
7. □ Bid

6. CONTRACT – Description of nature and extent (volume) of work:
Project Location:
Anticipated Project Start Date:

Bid Date:

Bid Time:

□ Negotiated

Anticipated Project Completion Date:

If contractor has started work an SBA Form 991 must be submitted to SBA before the Guarantee Agreement can be executed.
8. Obligee Name:
Address (Street, City, State, Zip, County)
BLOCKS 9-10 TO BE COMPLETED FOR BID BOND GUARANTEES.
9. Estimated Contract Amount:

10. Bid Bond Percentage or Amount

BLOCKS 11-21 TO BE COMPLETED FOR CONTRACTS AWARDED AND FINAL BOND GUARANTEES.
11. Date of Contract Award
12. Contract Amount
13. Maintenance Bond / Agreement
Amount
Years
14. Payment Bond Number

15. Payment Bond Amount

Ancillary Bond □ Yes

□ No

Type

16. Bid Spread
17. Performance Bond Number

18. Performance Bond Amount

19. Contractor Fee Amount:

Low $

20. Premium and Rate Charged by Surety:

2nd Low $
21. Surety Fee Amount:

BLOCKS 22-28 TO BE COMPLETED FOR CONTRACT/BOND AMOUNT CHANGES AND SHOULD SPECIFY THE INCREASE/DECREASE
CONTRACT, PREMIUM AND FEE AMOUNTS.
22.
23a. Original Contract Amount
23b. Revised Contract Amount
24. Payment Bond Amount
25. Performance Bond Amount
 Decr ease
26. Contractor Fee Amount:

27. Premium and Rate Charged by Surety:

28. Surety Fee Amount:

In my opinion the Principal appears to have the financial management and technical abilities to successfully complete this contract. However, I have determined
that the Principal falls below the normal underwriting standard of this Surety, who will not issue this bond without the SBA guarantee. By signing below, I
certify that I have been authorized by the Surety identified in Box 1 to obligate Surety to the terms and conditions stated on page 2 of this agreement and that
all information provided in connection with the Surety’s application for a surety bond guarantee from SBA is true, correct and complete to the best of my
knowledge. I understand that knowingly making a false statement or submitting false information is a violation of Federal law and could result in criminal
prosecution or civil penalties under 18 U.S.C. § § 287, 371, 1001, 15 U.S.C. § 645, or 31 U.S.C. § 3729.
29. Signature of Surety’s Attorney-in-Fact:
30. Date:
Printed Name:
Agency Name:
By its authorized signature, SBA agrees to guarantee the bond described herein as of the time of issuance, subject to 15 U.S.C. § 694a and b, SBA regulations in
13 CFR Part 115, and the terms and conditions stated on page 2 of this Agreement. In providing this guarantee, SBA relies on the declarations above and on the
forms submitted and signed by the Surety as applicable. This guarantee shall become effective upon the Surety’s execution (as defined in such regulations) of the
SBA-guaranteed bond. SBA guarantees ________ % of the loss in consideration of _______ % of the surety’s own premium base.
31. SBA Signature:
32. Title:
33. Date:
Disposition:
34. SBG Number:

Appr
Withdrawn
oved 
Retur
Declined
ned

SBA FORM 990 (2/16) Previous Editions are Obsolete

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Submission Instructions: The Surety Company or agent must print, sign, and mail all original Surety Bond Guarantee (SBG)
Agreements to the appropriate (SBG) office. If the application is submitted electronically, the prepopulated form can be
printed from the E-App system located at www.sba.gov/surety-bonds . The paper version is available on the Office of Surety
Guarantees website at www.sba.gov/surety-bonds. Addresses and geographical distributions of the SBG offices can also be
found on the Office of Surety Guarantees website at www.sba.gov/surety-bonds. SBA reviews the application, makes a final
determination, notifies the Surety of its decision and returns the signed agreement to the Surety. SBA’s approval of the
guarantee is contingent upon the remittance to SBA of the guarantee fee owed by the contractor.
Terms and Conditions:
1. If the Surety determines that the Contract price is reasonable and the Contract amount does not exceed that statutory ceiling
specified in 13 CFR Part 115, Surety shall, conditional on the execution of this guarantee by SBA become Surety on bid, performance
and payment bond(s) required for the award of the Contract. Surety may withdraw its decision to issue such bond(s) if prescribed
underwriting conditions are not met or if additional information comes to the attention of Surety of a nature so as to change its
underwriting determination and notice is given to SBA.
2. The Surety represents that the terms and conditions of such bond(s) are, and will be, in accord with SBA regulations
(13 CFR Part 115) and with those standards established and generally accepted by the surety industry for the type of contract for
which such bond(s) are required to be furnished by Principal, and Surety represents that such bonds would not be provided for
Principal on this Contract without this SBA guarantee.
3. If any suit or claim is filed against Surety upon said bond(s), Surety must inform SBA of the same within 30 days of receipt of
notice. Unless SBA decides otherwise, and so notifies Surety, Surety shall take charge of all suits or claims arising under said bond(s)
and compromise, settle, or defend such suit or claim until so notified. Surety shall take all steps necessary to mitigate any loss
resulting from Principal’s default. Surety shall not join SBA as a party in any lawsuit to which Surety is a party unless SBA has
denied liability or has agreed to such joinder in writing.
4. No employee of SBA has authority to waive, change or alter the terms of this Agreement, unless such alterations are separately
attached and both the SBA and Surety’s authorized representatives have signed and dated their assent.
5. This Agreement is made exclusively for the benefit of SBA and the Surety, and does not confer any rights or benefits on any other
party, such as any right of action against SBA by any person claiming under SBA-guaranteed bonds or otherwise. In the event of the
Surety’s insolvency, SBA shall not be liable to the receiver or other representative of the surety except for any loss incurred and
monies actually paid by such representative under the bonds guaranteed by SBA.
6. The Surety agrees to comply with all relevant SBA regulations. If any provision of this Agreement is in conflict with any SBA
regulation, such regulation shall prevail in construing or applying this Agreement.
___________________________
PLEASE NOTE: The estimated burden for completing this form is approximately 5 minutes per response. You are not required to
respond to any collection of information unless it displays a currently valid OMB approval number. Comments on the burden should
be sent to U.S. Small Business Administration, Chief, AIB, 409 3rd St., S.W., Washington, D.C. 20416 and Desk Officer for the Small
Business Administration, Office of Management and Budget, New Executive Office Building, Room 10202 Washington, D.C. 20503.
OMB Approval (3245-007). PLEASE DO NOT SEND FORMS TO OMB.
SBA FORM 990 (2/16) Previous Editions are Obsolete

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