Surety Bond Guarantee Program changes for the better

As the former comptroller of an 8(a) contractor in Ohio, Peter C. Gibbs has
witnessed firsthand the struggles small, disadvantaged businesses experience in the process of securing bonds required for construction contracts.

“I definitely saw the issues,” Gibbs recalled, noting that he is mindful of the challenges faced during his days at both Dayton-based Wise Construction Company and New York City’s Nico Construction, as he authorizes policy affecting comparable companies in his current role as Deputy Director of the U.S. Small Business Administration (SBA) Office of Surety Guarantees.

Working alongside Surety Bond Guarantee Program Director Frank J. Lalumiere, Gibbs has applied his hands-on knowledge of the industry to make changes for the better in the SBA office that provides incentives to surety companies to provide surety bonds to small businesses that may not otherwise have the opportunity. The program guarantees between 70 and 90 percent of the costs that a surety would incur if that small business defaults on the contract.