Fillable Surety Bond Guarantee Agreement (Page 2 of 2) in pdf

Submission Instructions: The Surety Company or agent must print, sign, and mail the original Surety Bond Guarantee (SBG)

Agreement to the appropriate (SBG) office. If the application is submitted electronically, the prepopulated form can be

printed from the E-App system. The paper version is available on the Office of Surety Guarantees website at

Addresses and geographical distributions of the SBG offices can also be found on the Office of Surety Guarantees website at

SBA reviews the application, makes a final determination, notifies Surety of its decision and returns signed

agreement to the Surety. If the surety bond guarantee application for a final bond is approved, the contractor’s fee is due to

SBA within 3 business days.

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 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 3

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 (1/13) Previous Editions are Obsolete

Surety Bond Guarantee Agreement Page 2