Expanding the Surety Bond Program Act of 2025
Summary
The "Expanding the Surety Bond Program Act of 2025" aims to increase the maximum guarantee amount for surety bonds under the Small Business Investment Act of 1958. It raises the guarantee limit from $6.5 million to $20 million per work order or contract. The act also adjusts administrative cost allowances within the surety bond program fund.
Expected Effects
This act will likely enable small businesses to bid on larger contracts by providing increased surety bond guarantees. It could also lead to more administrative oversight and potentially increased costs associated with managing the expanded program. The changes aim to bolster small business participation in larger projects.
Potential Benefits
- Increased opportunities for small businesses to secure larger contracts.
- Potential for economic growth through expanded small business activity.
- Enhanced support for small businesses in the construction and contracting industries.
- Streamlined administrative processes with updated IT systems.
- Improved outreach activities to inform small businesses about the program.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased administrative costs, reducing available funds for guarantees.
- Risk of higher default rates due to larger contract sizes.
- Possible strain on administrative resources to manage the expanded program.
- Could disproportionately benefit larger small businesses over smaller ones.
- May require additional oversight to prevent fraud or misuse of funds.
Constitutional Alignment
The act aligns with the Constitution's Article I, Section 8, which grants Congress the power to regulate commerce and provide for the general welfare. By supporting small businesses through surety bond guarantees, the act aims to promote economic activity, which falls under the purview of congressional authority. The act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).