In the event of a shutdown of the Federal Government at midnight on April 8, 2011, please be advised that the processing of applications and claims in the Prior Approval Surety Bond Guarantee Program, and the processing of claims in the Preferred Surety Bond (PSB) Guarantee Program, will be suspended for the duration of the shutdown.
Prior Approval Program
As noted above, during the period of the shutdown, SBA will be unable to process bond guarantee applications in the Prior Approval Surety Program. In addition, please be advised that if SBA has previously approved a surety’s request for a bid bond guarantee and the bid is accepted, SBA will be unable to formally approve the guarantee for the performance bond during the duration of the shutdown. Sureties should nevertheless submit the application for such bond guarantees to SBA, and SBA will process these guarantee requests when the shutdown ends in accordance with its regulations. Due to the exigency created by the shutdown of the Federal government, and SBA’s inability to issue such guarantees during such time, SBA will permit the performance bond (based on a bid bond previously approved for guarantee by SBA) to be executed prior to the date of SBA’s guarantee on the performance bond.
During the period of the shutdown, PSB sureties will be able to continue to input bond guarantees into the SBG system. However, as noted above, SBA will be unable to process claims during the shutdown.