Expanding the Surety Bond Program Act of 2025

Expanding the Surety Bond Program Act of 2025 would amend the Small Business Investment Act of 1958 to significantly broaden the U.S. Small Business Administration’s (SBA) Surety Bond Guarantee Program. The core changes raise the size limits for guaranteed contracts, create a new “Preferred” surety program alongside the existing “Prior Approval” program, and tighten management of the revolving fund that supports the program. The bill also adds annual reporting requirements by the SBA and a Government Accountability Office (GAO) review to improve efficiency and reduce paperwork. A key feature is a safeguard that whenever supplemental funding is requested, the maximum guaranteed amount for that fiscal year is temporarily reduced. Overall, the bill is designed to enable smaller firms to bid on and win larger contracts, while increasing financial oversight and accountability for the program.