[Congressional Record Volume 172, Number 75 (Wednesday, April 29, 2026)]
[Senate]
[Pages S2108-S2109]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPANDING THE SURETY BOND PROGRAM ACT OF 2025
The Senate proceeded to consider the bill (S. 2232) to expand the
surety bond program under the Small Business Investment Act of 1958,
and for other purposes, which had been reported from the Committee on
Small Business and Entrepreneurship with an amendment to strike all
after the enacting clause and insert the part printed in italic, as
follows:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Expanding the Surety Bond
Program Act of 2025''.
SEC. 2. EXPANSION OF THE SURETY BOND PROGRAM.
Part B of title IV of the Small Business Investment Act of
1958 (15 U.S.C. 694a et seq.) is amended--
(1) in section 411 (15 U.S.C. 694b)--
(A) in subsection (a)(1)--
(i) in subparagraph (A)--
(I) by striking ``$6,500,000'' and inserting
``$18,000,000''; and
(II) by inserting ``, subject to the exception in
subparagraph (B)'' after ``United States Code''; and
(ii) by striking subparagraph (B) and inserting the
following:
``(B) (i) In any fiscal year in which the Administrator
submits a formal request, including budget justification
documents submitted by the Administrator to Congress, for
supplemental funds under section 412(d), the amount described
in subparagraph (A) shall be reduced by 33 percent.
``(ii) The limit described in clause (i) shall apply until
the first of either--
``(I) 12 months after the date on which the Administrator
submits the formal request described in that clause; or
``(II) 150 days after the date on which--
``(aa) the requested funds are provided, and the
Administrator attests that the fee collection activities of
the Administration are sufficient to maintain a deficit-
neutral revolving fund; or
``(bb) the Administrator notifies Congress that funds are
no longer required and attests that the fee collection
activities of the Administration are sufficient to maintain a
deficit-neutral revolving fund.
``(iii) After the expiration of the period described in
clause (ii), the limit described in clause (i) shall revert
to the amount designated in subparagraph (A).''; and
(B) in subsection (e)--
(i) in paragraph (1), by striking the comma at the end and
inserting a semicolon;
(ii) in paragraph (2), by striking ``$6,500,000,'' and
inserting ``the amount described in subparagraph (A) or
(B)(i) of subsection (a)(1), as applicable;''; and
(iii) in paragraph (3), by striking ``, or'' and inserting
``; or'';
(2) in section 412 (15 U.S.C. 694c)--
(A) in subsection (a), in the third sentence, by striking
``, excluding administrative expenses,'';
(B) by redesignating subsection (b) as subsection (c);
(C) by inserting after subsection (a) the following:
``(b) Not more than 2 percent of the amount in the fund
described in subsection (a) on the first day of each fiscal
year may be obligated during that fiscal year to cover costs
incurred by the Administration in connection with the
management and administration of this part, including costs
related to information technology and systems, outreach
activities, and relevant contracts.''; and
(D) by adding at the end the following:
``(d) If the Administrator notifies any committee of the
Senate or the House of Representatives that supplemental
funding is necessary to carry out the Surety Bond Program
authorized under section 411(a)(3), the Administrator shall,
on the same date, notify in writing the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives regarding
the need for the supplemental funds.''; and
(3) by adding at the end the following:
``SEC. 413. REPORT.
``(a) Small Business Administration.--Not later than 90
days after the first day of each fiscal year, the
Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report covering
the period of the previous fiscal year describing the status
and activities carried out under this part and the financial
health of the revolving fund created under section 412(a),
which shall include--
``(1) with respect to guarantees under this part--
``(A) the total dollar value in the aggregate among all
sureties;
``(B) the total dollar value issued by sureties
participating in the Prior Approval Program;
``(C) the total dollar value issued by sureties
participating in the Preferred Surety Bond Guarantee Program
authorized under section 411(a)(3);
``(D) the average bond size; and
``(E) the number of issued bonds that exceed the limits
established under subparagraphs (A) and (B) of section
411(a)(1);
``(2) with respect to claims paid--
``(A) the total dollar value of claims paid in the
aggregate;
``(B) the total dollar value of claims originating from
bonds issued by sureties participating in the Prior Approval
Program and the number of such claims; and
``(C) the total dollar value of claims originating from
bonds issued by sureties participating in the Preferred
Surety Bond Guarantee Program authorized under section
411(a)(3) and the number of such claims.
``(3) information on the solvency of the revolving fund,
including--
``(A) the revolving fund balance at the end of the
reporting period;
``(B) net cash flow;
``(C) administrative expenses incurred; and
``(D) the revolving fund balance at the end of the
reporting period, adjusted for administrative expenses under
subparagraph (C);
``(4) the number of sureties participating in the Prior
Approval Program;
``(5) the number of sureties participating in the Preferred
Surety Bond Guarantee Program authorized under section
411(a)(3); and
``(6) information on administrative expenses, including--
``(A) a description of administrative expenses claimed from
the revolving fund under section 412(b) as of the end of the
reporting period; and
``(B) the total cost of administrative expenses claimed.
``(b) Government Accountability Office.--Not later than 270
days after the date of enactment of the Expanding the Surety
Bond Program Act of 2025, the Comptroller General of the
United States shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the
current processes of the Small Business Administration for
approving applicants to the Surety
[[Page S2109]]
Bond Program, including recommendations for improving program
efficiency and simplifying paperwork requirements.''.
The committee-reported amendment, in the nature of a substitute, was
agreed to.
The bill (S. 2232), as amended, was ordered to be engrossed for a
third reading, was read the third time, and passed.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. MARKEY. Mr. President, I want to thank the Chair for working with
me to pass these two bills that were reported favorably out of our
committee: Chair Ernst's SBA Fraud Enforcement Act and my Expanding the
Surety Bond Program Act.
Senator Ernst's bill extends the statute of limitations for two
COVID-era programs and incorporates my amendment to ensure that
enforcement by the Department of Justice is carried out in a
nonpartisan manner.
My Expanding the Surety Bond Program Act will expand opportunities
for small contracting businesses looking to access larger contracts.
Not everyone is aware of the important role that surety bonds play in
the contracting process, but every builder, every supplier, every
producer in Massachusetts and across the country understands that
without them, significant contracts cannot move forward.
In the last 7 years, SBA's Surety Bond Program has supported more
than $13 billion in revenues--including $165 million in Massachusetts.
My bill actually expands this program by raising the limit on SBA-
backed surety bonds to $18 million on all contracts, and it also
includes provisions that Chair Ernst added to mitigate risks to the
program.
Again, I want to thank Chair Ernst for her commitment to seeing these
bills through to passage, and I thank the Chamber for unanimously
accepting our recommendations.
The PRESIDING OFFICER. The Senator from Iowa.
Ms. ERNST. Mr. President, I also would like to thank Ranking Member
Markey for his great collaboration on these bills. It is another
example of truly bipartisan work and collaboration to get these bills
done, to get them off the floor of the Senate and on their way.
So I really appreciate the consideration that you have given, Ranking
Member.
This is a major win for taxpayers who had their hard-earned money
stolen by fraudsters. Now the investigators have been given the time
they need to track down the thieves who stole taxpayer dollars and to
build strong, prosecutable cases.
Today's action also sends a clear message to fraudsters: You will be
held accountable. You will not get away with your crimes.
This is critical to ensure that this blatant fraud is stopped in its
tracks.
I look forward to working with the SBA, the IG, and the Department of
Justice to track down every single crook who defrauded our taxpayers.
Again, I thank the ranking member for the collaboration.
I yield the floor.
The PRESIDING OFFICER. The Senator from Iowa.
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