Government Shutdown Suspends SBA Surety Bond Program

September 30, 2025

While the federal government is shut down, the Small Business Administration’s (SBA) Surety Bond Program is largely suspended. This means new bid bond and performance bond guarantees cannot be processed.

The SBA’s commitment to previously approved guarantees remains, however the inability to issue new guarantees can significantly disrupt small businesses pursuing federal contracts.

How the Shutdown Impacts the Surety Bond Program

Bid Bonds: New applications for bid bond guarantees are not being processed, limiting small businesses’ ability to compete for federal projects.

Performance Bonds: Even if a bid bond was previously approved, the SBA may still be unable to formally approve the related performance bond guarantee.

Application Backlog: Applications submitted during the shutdown will not be reviewed until operations resume and will be processed in the order they were received, creating potential delays.

What You Can Do

Submit Applications Now: Applications can still be filed with the SBA. Doing so ensures they are in the queue for processing once the shutdown ends.

Stay Updated: Monitor official SBA communications and federal news outlets to know when the program is active again.

Plan for Delays: Expect longer processing times. Have all documentation ready so you can act quickly once SBA operations resume.