One of the areas that the SBA is working with contractors is in being more accepting on the quality of financial statements you prepare. For many contractors, the cost of bonding is really the cost they have to spend on CPA’s and accountants to prepare the financial information required by the surety. So it is really good to know the rules before you spend the money.
The following are SBA guidelines coming directly from the SBA. If you only want to bid jobs under $500,000, a simple in-house statement at 12/31 fiscal year end, and another simple in-house statement at 6/30 interim is all you need. If you want to bid jobs up to $1,000,000, it’s possible you can get it does with a high quality in-house fiscal year end statement and a high quality in-house six month interim statement. Give us a call if you would like to get a better understanding of a simple in-house statement and a high quality in house statement.
Sometimes, for jobs up to $1,000,000, the SBA will require a CPA compilation at fiscal year end and either a CPA compilation at 6 months or a high quality in house interim. For projects over $1,000,000 and possible jobs up to $6,500,000 (Yes, you read that right, the SBA will consider jobs now up to $6,500,000!) the SBA will require a CPA review at fiscal year end and a CPA compilation at six months. Confused? No problem. Just give us a call and we’ll help design a surety program just for you.