The SBA Office Launches a New Electronic Claim Filing System
The SBA has recently announced a new claim filing system for surety bond companies that utilize the SBA for a guarantor for small business bonds.
This new electronic system does away with the old paper model, which required all of the attending costs and systems that did, at times, over burden the system. Prior to this new system, all of the paperwork had to be manually prepared and then shipped (via FedEx or other carrier) and then manually processed again. The new electronic system does away with that and allows for a seamless one-stop shop for bond applications and approvals.
What this means for most businesses is that there is a shorter turn around in bond applications through the SBA. This will allow the SBA to move away from a guarantor of last resort to more of a main steam guarantor. Thus, many small businesses that cannot meet the strict requirements of a surety bond carrier can now apply and get approved for a performance, payment or other type of bond. Further, the lower costs involved will become systematized and shared throughout the system, which will require most existing bond companies to lower their internal costs accordingly.
