S. 2232 — Expanding the Surety Bond Program Act of 2025

This section expands the Surety Bond Program—under which the Small Business Administration (SBA) guarantees up to 90% of losses to sureties issuing bid, performance, payment, and ancillary bonds to small businesses—by (1) increasing the maximum contract amount eligible for guarantees to $18 million (from $6.5 million), subject to an automatic 33% reduction in any fiscal year in which SBA formally requests supplemental funding under new section 412(d) until the reduction expires after 12 months or 150 days following funding provision or notice that funding is no longer needed with attestation of a deficit-neutral revolving fund; (2) authorizing SBA to obligate up to 2% of the surety bond revolving fund balance at the start of each fiscal year for administrative costs (e.g., information technology, outreach, contracts), removing prior exclusions for such expenses; (3) requiring written notification to the Senate Committee on Small Business and Entrepreneurship and House Committee on Small Business on the same date SBA notifies any congressional committee of the need for supplemental funding; and (4) requiring (a) annual SBA reports to those committees within 90 days of each fiscal year start, detailing prior-year program activity (e.g., aggregate bond values and claims by Prior Approval and Preferred Surety Bond Guarantee Programs, average bond size, number of bonds exceeding limits, fund solvency and cash flow, surety participation, administrative expenses), and (b) a Government Accountability Office report within 270 days of enactment assessing SBA applicant approval processes with recommendations to improve efficiency and reduce paperwork.