Contract bonds approved on credit. No financial statements, no CPA-prepared statements, no work-in-progress schedules. $1,000,000 is the standard limit, and up to $2,000,000 is available on request.
Most contract bond programs open by asking for three years of financials. This one does not. The review looks at the credit of the business and its owners, and that is the review.
Contractors and service providers both qualify. You do not have to be a general contractor to use the program.
One $2,000,000 bond uses the whole program. So do four bonds of $500,000. As jobs finish and bonds are released, that capacity frees up again.
The application opens at a standard limit of $1,000,000. To go above it, pick the higher limit option on the form and describe your largest recent projects, which is what the review uses to set the number.
| Credit only | Standard underwriting | |
|---|---|---|
| Largest single bond | $2,000,000 | Set case by case |
| Total open penalty | $2,000,000 | Set case by case |
| What gets reviewed | Credit of the business and its owners | Financial statements, work on hand, bank and CPA relationships |
| Who it suits | Newer firms, and anyone who would rather not hand over financials for a $300,000 job | Established contractors carrying larger backlogs |
A single job above $2,000,000, or a bonded backlog that would cross $2,000,000 once the new bond is added, falls outside this program. Those files go to standard underwriting, which does ask for financial statements and work-in-progress detail.
Ask for a higher limit and someone will tell you what your file needs before you gather anything.
Business name and address, legal structure, the type of work you do, and the name and title of whoever signs for the company. It also asks four eligibility questions: time in business or under current management, any bankruptcy, any contract default, and any surety claim, lawsuit, lien or open bond with another surety. Work inside the five boroughs of New York City is asked about separately.
The credit review needs the business owner's name, address and Social Security Number, so have that ready before you start. You get a review screen before anything is submitted.
If your file needs anything further once it is in, someone will contact you directly. Prefer to talk it through first? Call (877) 890-7722.