An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Surety Bond Program

A government program, run by the Small Business Administration (SBA), that helps small businesses get 'surety bonds' by guaranteeing a portion of the bond to the bond company. These bonds are like insurance guarantees that ensure a contractor will complete a project as promised.

Surety bond

A three-party agreement where a 'surety' (like an insurance company) guarantees to a 'client' (like a government agency) that a 'contractor' (a small business) will fulfill the terms of a contract. It protects the client if the contractor doesn't meet their obligations.

Administrator

Refers to the Administrator of the Small Business Administration, the head of the agency responsible for supporting small businesses.

Revolving fund

A fund that operates like a checking account, continually replenishing itself through fees, repayments, or other income, to finance ongoing operations or programs without needing new annual appropriations for its base capital.

Deficit-neutral revolving fund

A revolving fund that aims to cover its own costs and not require additional taxpayer money to operate, ideally through fees or other revenue generated by the program itself.

Prior Approval Program

One of the SBA's surety bond guarantee programs where the SBA directly reviews each bond request before providing a guarantee.