Expanding the Surety Bond Program Act of 2025

The maximum surety bond guarantee amount was lowered from $20 million (in the introduced version) to $18 million.

The cap on administrative expenses drawn from the revolving fund was reduced from 5 percent to 2 percent of the fund balance at the start of each fiscal year.

A new automatic reduction mechanism: if the SBA Administrator formally requests supplemental funds for the Surety Bond Program, the $18 million limit is reduced by 33 percent until either 12 months pass or 150 days after funds are provided (or no longer needed) and the Administrator attests the revolving fund is deficit-neutral. After that period, the limit reverts to $18 million.

New section 412(d) requires the SBA Administrator to notify the Senate and House Small Business Committees in writing on the same date any supplemental funding request for the Surety Bond Program is made to other congressional committees.

New section 413 requires the SBA to submit an annual report within 90 days of each fiscal year start detailing total guarantee values, bond sizes, claims paid, revolving fund solvency, number of participating sureties in both the Prior Approval Program and the Preferred Surety Bond Guarantee Program, and administrative expenses.

New section 413(b) requires the GAO to submit a report within 270 days of enactment on SBA's approval processes for the Surety Bond Program, including recommendations for improving efficiency and simplifying paperwork.