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Atlanta was designated by the U.S. Department of Housing and Urban Development (HUD) as a Renewal Community (RC) along with 40 other communities nationwide. In the Renewal Community, tax incentives and credits are available to spur economic development and job growth.
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Renewal Community Wage Credit
Business with employees that live and work within the RC boundaries
Credit against Federal taxes up to $1,500 for each year of RC designation for every employee (existing and new hire) who lives and works in the RC area. Tax credit for 15% of first $10,000 in wages per employee may be taken annually through 2009. Unused credits can be carried back one year or forward for up to 20 years.
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Commercial Revitalization Deduction
Property owners who substantially renovate an existing building or develop a new building for commercial use within the RC.
An accelerated depreciation deduction period for commercial real estate property, either new construction or substantial (more than adjusted basis) rehabilitation. The taxpayer/property owner can choose one of two methods to use this incentive: depreciate 50% of qualified capital expenditures in the year the building is placed in service then depreciate the remaining balance over 39 years or depreciate 100% of the qualified capital expenditures over a 120-month period. This incentive is limited to $10 million per project. The property owner must receive the allocation of the deduction from the state-designated Commercial Revitalization Authority.
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Capital Gains Exclusion
“Renewal Community Business” as defined by the Internal Revenue Code: 85% of property in RC, 50% of gross income from RC, 35% of employees live in RC.
Allows a 0% capital gains rate for RC assets held for a minimum of 5 years. An asset could include tangible property in the RC, stock, capital interests or profit interests in a RC Business acquired for cash. The rate applies to gains after December 31, 2001 and before January, 1 2015. The taxpayer is not required to sell the asset in 2015, but must determine and substantiate the gain for that period.
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Increased Section 179 Deduction
“Renewal Community Business” as defined by the Internal Revenue Code: 85% of property in RC, 50% of gross income from RC, 35% of employee live in RC – with less than $200,000 in new equipment needs annually.
Up to an additional $35,000 immediate depreciation expense for machinery or equipment, including computers, placed in service in that year. For example, the incentive allows an “RC Business” to take up to a total of $285,000 “write-off” in 2008 on Form 4562.
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Contact Information:
William McFarland
Executive Director of Renewal Community
wmcfarland@enterprisefoundation.org
Lisa Hawkins
Senior Project Manager
lhawkins@enterprisefoundation.org
Enterprise Foundation
34 Peachtree Street
Atlanta, GA 30303
404-522-3970
Atlanta Work Force Development Agency
The Atlanta One-Stop Center can provide an employer with valuable tax incentives and credits as well as information. Certain targeted populations, if hired, can earn the following tax credits.
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Work Opportunity Tax Credit (WOTC)
Employers who hire within the nine targeted groups of job seekers will reduce federal income tax liability by as much as $2,400 per qualified new worker.
The WOTC is one tool in a diverse toolbox of flexible strategies designed to help people move from welfare to work and gain on-the-job experience. |
Section 108-CDBG Loan Guarantee Program
The CDBG Loan Guarantee Program (Section 108) is a flexible economic and community development financing tool that can be utilized for certain large scale economic development financing tool that can be utilized for certain large scale economic development projects that cannot proceed without loan guarantee assistance. The City of Atlanta may re-loan the proceeds to for-profit businesses and local development authorities that may serve as eligible sub-recipient borrowers.
Eligible Activities:
- Acquisition of real property
- Clearance and removal of slums and blight
- Rehabilitation of real property owned by a public entity
- Site preparation, including construction, reconstruction, or installation of public utilities or facilities related to the redevelopment or reuse of the real property
- Other economic development activities
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Loan Amount:
Maximum loan amount is $5,000,000
Terms and Conditions:
Financing options will vary, but generally loan terms that are less than 10 years are most competitive. Local government with sound finances that provide certain “credit enhancements” may be able to arrange loan terms up to 20 years. In order to be approved by DCA, all projects will be subject to rigorous underwriting that documents a project’s “economic viability”. Local governments will generally be required to obligate themselves and document to DCA’s satisfaction that all debt will be repaid.
Rate:
Interest rates are determined by the public market for government debt. Because the notes are ultimately backed by the full faith and credit of the United States, the permanent interest rate on 108 loans will only be a few basis points higher than Treasury bond rates for similar terms. Interim rates will be a few basis points higher than the LIBOR rate.
Job Creation:
Each funded activity must generally meet a minimum low and moderate-income benefit threshold of 70%. |
For further information contact:
Ms. Jocelyn Ross
City of Atlanta
404-330-6113
jross@atlantaga.gov
Quick Start is the State of Georgia’s internationally recognized training program for new, expanding and existing industry. In addition to new Georgia arrivals, Quick Start will help existing companies retain jobs by offering free training to businesses that add 15 or more employees. Quick Start is among the state’s primary incentives for recruitment of new jobs to Georgia and retention of existing jobs. Unlike many states, which only provide training grants, Quick Start develops and delivers a full range of high quality customized training services at no cost to client companies.
These training services cover not only job specific skills but also automation, productivity enhancement, and human resource development training. Examples include Lean Manufacturing, Statistical Process Control, Programmable Logic Controller, and Team Skills Training.
In addition to manufacturing operations, Quick Start provides comprehensive training for distribution centers, and service operations such as corporate headquarters, billing and remittance centers, and technical support centers.
For further information contact:
Mike Grundmann
Marketing Director
75 Fifth Street, NW, Suite 400
Atlanta, GA 30308
(404) 253-2822
www.georgiaquickstart.org
Investment Tax Credits
A taxpayer must choose either the regular or optional investment tax credit. Once this election is made, it is irrevocable. A taxpayer that has operated an existing manufacturing or telecommunications facility or manufacturing or telecommunications support facility for the previous three years (36 months) may obtain a credit against income tax liability as follows.
- Companies expanding in Fulton County must invest $50,000 to receive a 1% credit. That credit increases to 3% for recycling, pollution control, and defense conversion activities.
- Taxpayers in the City of Atlanta qualifying for the investment tax credit may choose an optional 6% investment tax credit.
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The credit may be claimed for 10 years, provided the qualifying property remains in service throughout that period.
The optional investment tax credit is calculated based upon a three-year tax liability average. The annual credits are then determined using this base year average. The credit available to the taxpayer in any given year is the lesser of the following amounts:
- 90% of the increase in tax liability in the current taxable year over that in the base year, or
- The excess of the aggregate amount of the credit allowed over the sum of the amounts of credit already used in the years following the base year.
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Generally, a taxpayer may not take both the job tax credits and the investment tax credit for the same project.
Research & Development Tax Credit
A tax credit is allowed for research expenses for research conducted within Georgia for any business or headquarters of any such business engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development industries. The credit shall be 10% of the additional research expense over the “base amount,” provided that the business enterprise for the same taxable year claims and is allowed a research credit under Section 41 of the Internal Revenue Code of 1986. The credit may be carried forward 10 years but may not exceed 50% of the business’s remaining Georgia net income tax liability after all other credits have been applied for the current year. (Note that the base amount must contain positive Georgia taxable net income for all years.)
Small Business Growth Companies Tax Credit
A tax credit is granted for any business or the headquarters of any such business engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development industries having a Georgia net taxable income in the current year which is 20% or more above that of the preceding year if its net taxable income in each of the two preceding years was also 20% or more. The credit shall be the excess over 20% of the percentage growth and shall not exceed 50% of the business’s remaining Georgia net income tax liability after all other credits have been applied for the current year. The credit is available to companies whose total tax liability does not exceed $1.5 million.
Ports Activity Job Tax & Investment Tax Credit
Businesses or the headquarters of any such businesses engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development that have increased their port traffic tonnage through Georgia ports during the previous 12-month period by more than 10% over their 1997 base year port traffic, or by more than 10% over 75 net tons, five containers or 10 20-foot equivalent units (TEU’s) during the previous 12-month period are qualified for increased job tax credits or investment tax credits. NOTE: Base year port traffic must be at least 75 net tons, five containers, or 10 TEU’s. If not, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEU’s as the base. Companies must meet Business Expansion and Support Act (BEST) criteria for the county in which they are located.
The job tax and investment tax credits for Fulton County and the City of Atlanta is an additional $1,250 per job, or 5% investment tax credit, or 10% optional investment tax credit.
The additional job tax credits are limited to 50 percent of the taxpayer’s Georgia net income tax liability in the current year regardless of the tier in which the jobs are located. The investment tax credit taken under the port traffic provision is limited to 50 percent of the taxpayer’s net income tax liability. Any unused job or investment tax credit may be carried forward for ten years from the close of the taxable year in which the qualified jobs were established or the qualified property was placed in service. The optional investment tax credit taken under the port traffic provision shall be claimed for up to ten taxable years, provided the qualifying property remains in service throughout that period.
Companies that create 400 or more new jobs, invest $20 million or more in new and expanded facilities, and increase their port traffic by more than 20% above their base year port traffic may take both job tax credits and investment tax credits.
For further information on income tax credits related to headquarters, investment, child care, Research and Development small business and ports activity, contact:
Dawn Sturbaum
Georgia Department of Revenue
1800 Century Center Boulevard, Room 15318
Atlanta, Georgia 30345
(404) 417-2441
dsturbau@gatax.org
Also see: www2.state.ga.us
Sales and Use Tax Exemptions
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Manufacturing - Provides for an exemption from the sales and use tax for: |
- Machinery used directly in the manufacture of tangible personal property when the machinery is bought to replace or upgrade machinery in a manufacturing plant presently existing in the state and machinery components which are purchased to upgrade machinery used directly in the manufacture of tangible personal property in a manufacturing plant;
- Machinery used directly in the manufacture of tangible personal property when the machinery is incorporated as additional machinery for the first time into a manufacturing plant presently existing in this state;
- Machinery which is used directly in the manufacture of tangible personal property when the machinery is incorporated for the first time into a new manufacturing plant located in this state;
- Machinery used directly in the remanufacture of aircraft engines, parts, and components on a factory basis;
- The sale or use of repair or replacement parts, machinery clothing or replacement machinery clothing, molds or replacement molds, dies or replacement dies, and tooling or replacement tooling for machinery used directly in the manufacture of tangible personal property in a manufacturing plant presently existing in this state. This exemption has been phased in over a 5-year period beginning on January 1, 2001 at 20% of the purchase price per year with a limitation of $150,000 per part;
- Overhead materials consumed in the performance of certain contracts between the Department of Defense or NASA and a contractor engaged in manufacturing (this exemption has been phased in at a 25% increment rate each year from January 1, 1997 to January 1, 2004); and
- The sale of machinery, equipment, and materials incorporated into and used in the construction or operation of a clean room of Class 100 or less in Georgia, provided that such clean room is used directly in the manufacture of tangible personal property.
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Computer Equipment - The sale or lease of computer equipment to be used at a facility or facilities in this state to any high-technology company classified under certain NAICS Codes where such sale of computer equipment exceeds $15 million for any calendar year, or, where in the event of a lease of such computer equipment, the fair market value of such leased computer equipment exceeds $15 million for any calendar year.
Primary Materials Handling - Purchases of primary material handling equipment and racking systems that are used directly for the storage, handling, and moving of tangible personal property in a new or expanding warehouse or distribution facility when such new facility or expansion is valued at $5 million or more and does not have greater than 15% retail sales are exempt from sales and use taxes.
Electricity - Electricity purchased that interacts directly with a product being manufacture is exempt from sales taxes when the total cost of the electricity exceeds 50% of the cost of all materials used, including electricity, in making the product. This exemption requires a utility study to document the conditions of the exemption. |
For further information on sales and use tax exemptions, contact:
Jon Galbraith
Georgia Department of Revenue
1800 Century Center Boulevard, Room 15310
Atlanta, Georgia 30345
(404) 417-6628
jgalbra@gatax.org
Also see www2.state.ga.us
Atlanta Women’s Business Center
The Atlanta Women’s Business Center offers assistance with various aspects of business operations including cash flow and profit margin projections. The center has a well organized information section stocked with computers, manuals, books and audio and video tapes on various business topics. Counselors from the SBA’s Atlanta SCORE Chapter offer one-on-one counseling to women entrepreneurs. Workshops and seminars are offered throughout the year and cover such topics as the basics of starting a business, developing a business plan, marketing, sources of business capital, and technology as a business tool.
For more information, contact:
Paola Diaz-Torres, Center Director
(404) 965-3983
Georgia Center for Non-Profits:
www.gcn.org
Business Incubators
Business incubation is the process of business development. Incubators help to nurture young businesses from the startup stage when they are most vulnerable. An incubator program’s main goal is to produce financially viable and freestanding businesses. Below is a listing of some of the business incubators in Atlanta:
Atlanta Technology Development Center (ATDC)
430 Tenth Street, NW, Suite N-116
Atlanta, Georgia 30318
Cindy Cheatham, Venture Catalyst
404-894-6113
www.atdc.org
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Fulton County Business Incubator
5534 Old National Highway
College Park, Georgia 30349
Eugene Merriday, Executive Director
404-836-7700
www.fcbi.org |
Intelligent Systems Incubator
4355 Shackleford Road
Norcross, Georgia 30093
Bonnie Herron, Vice President
770-381-2900
www.intelsys.com
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Business Incubator
Atlanta, Georgia
Allan Mitchell, Executive Director
404-329-4500
www.sdbusinc.org |
Business Information Center (BIC)
The Business Information Center (BIC) is located in the downtown Georgia District Office in the Peachtree Center complex on the 19th floor of Harris Tower. BIC is open Monday through Friday and is staffed by SCORE business counselors. It offers an extensive reference library, workshops, and computer access to the Internet. The BIC phone number is 404 331-0100, ext. 704.
For further information contact:
The Small Business Administration
Georgia District Office
233 Peachtree Street, Harris Tower, Suite 1900
Atlanta, GA 30303
(404) 331-0100
(800) 733-2894
www.sba.gov/ga
Export-Import Bank
The Export-Import Bank of the United States (Eximbank) is an independent U.S. Government agency that helps finance the sale of U.S. goods and services to foreign buyers. Eximbank supports export sales by making it easier for overseas buyers to purchase U.S. goods and services on credit. It does this in two ways:
- Eximbank provides loans directly to foreign buyers; and
- It encourages U.S. suppliers or their banks to extend credit terms to foreign buyers by providing credit risk protection, and in some cases, fixed-rate funding support.
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Eximbank also helps U.S. exporters obtain pre-export financing through its Working Capital Guarantee Program.
Eximbank will support the sale of U.S. goods or services to a creditworthy foreign buyer when private financing cannot be arranged. To qualify for Eximbank support, the product or service must have at least 51% U.S. content, and cannot be military related. All transactions also must be economically viable and must not affect the U.S. economy adversely. There must be a reasonable assurance of repayment.
Eximbank can assist in three ways:
- By guaranteeing 100% of the principal and interest on commercial loans to small and medium-sized companies that need funds to produce or market U.S. goods and services for export.
- By providing competitive, fixed-interest rate loans to foreign buyers of U.S. capital equipment and services, or through an intermediary lender.
- By providing credit insurance policies for single or repetitive export sales or leases to foreign buyers.
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For further information contact:
John Johnson Export-Import Bank of the United States
777 N.W. 72nd Avenue Suite 3M2
Miami, Florida 33126 (305) 526-7436, ext. 19
www.exim.gov
Micro-Enterprise Resources
The Association for Enterprise Opportunity (AEO) was founded in 1991 and is a national member-based association dedicated to micro-enterprise development. Micro-enterprise is generally defined as a business employing five (5) or fewer individuals and requiring financing needs of $35,000 or less. Please view the AEO website at www.microenterpriseworks.org for further information. Following are AEO affiliated members that provide technical and financial assistance in Georgia.
AMEN, Inc.
P.O. Box 76956
Atlanta, GA 30358
770-952-0862
770-984-8627 Fax
www.ameninc.org
County covered: Fulton
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Center for Black Woman’s Wellness, Inc.
477 Windsor Street SW Suite 309
Atlanta, GA 30039
404-688-9202
404-880-9435 Fax
www.cbww.org
County covered: Fulton
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Cobb Microenterprise Center Kennesaw State University
1000 Chastain Road Mailbox #3305
Kennesaw, GA 30144
770-499-3228
770-499-3636 Fax
www.cobbmicro.org
Counties covered: Cobb, Dekalb, Fulton
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Latin American Association
2750 Buford Highway
Atlanta, GA 30316
404-638-1800
404-638-1806 Fax
www.latinamericanassoc.org
County covered: Dekalb |
Dekalb Micro-enterprise Institute
150 E. Ponce de Leon Avenue, Suite 320
Decatur, GA 30030
404-687-2730
Maria M. Mullins, Director
www.decidedekalb.com
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Georgia Micro Enterprise Network (GMEN)
3695-F Cascade Road PMB #215
Atlanta, GA 30331
678-296-1059
404-696-8748 Fax
Georgiamicroenterprise.org |
University Community Development Corporation
440 Westview Drive SW Room 208
Atlanta, GA 30310
404-522-8980
404-525-7377 Fax
www.aucenter.edu
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United Way of Metropolitan Atlanta
100 Edgewood Avenue NE
Atlanta, GA 30303
404-527-7200 (Main)
404-527-7353 Fax
(For Help 404-614-1000)
www.unitedwayatlanta.org
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Micro Loan Funds Include: |
Accion USA
100 Peachtree Street
Suite 700
Atlanta, Georgia 30303
404-521-0594 404-521-0597 Fax
www.accion.org
Counties covered: Statewide
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Atlanta Micro Fund Inc.
P.O. Box 89285
(Mailing Address)
Atlanta, GA 30312
675 Ponce de Leon Avenue, NE
Atlanta, GA 30303
404-853-7345
404-853-7677 Fax
www.ahand.org |
Atlanta Housing Association of Neighborhood-based Developers (AHAND)
P.O. Box 11387 (Mailing Address)
Atlanta, GA 30310
633 Pryor Street (Street Address)
Atlanta, GA 30312
404-586-0808 (Main)
404-586-0805 Fax
www.ahand.org
County covered: Fulton |
Minority Small Business Resources
The City of Atlanta’s Equal Business Opportunity Program serves as a liaison linking minority and female businesses with the city’s related business opportunities to encourage equal opportunity for all businesses. It is the responsibility of the Office of Contract Complaince to promote full and equal business opportunity for all persons doing business with the City of Atlanta.
Information concerning the Minority/Female Business Enterprise (M/FBE) Register is located at http://apps.atlantaga.gov/deptmayor/Occ/MBE/
For additional information, contact:
Hubert Owens, Acting Director
Office of Contract Compliance
55 Trinity Avenue
Atlanta GA 30303
404-330-6010
howens@atlantaga.gov
In addition, the following organizations provide a variety of opportunities, technical assistance and counseling to minority small business owners in Atlanta.
Atlanta Business League
931 Martin Luther King Jr. Drive
Atlanta, GA 30314
(404) 584-8126
Fax: (404) 584-0445
Rebecca Temple:
www.atlantabusinessleague.org |
Atlanta Public Schools
Office of Contract Compliance
190 Trinity Avenue
Atlanta, GA 30303
(404) 802-2400
www.atlanta.k12.ga.us |
Georgia Minority Business Development Center
Georgia Tech Economic Development Institute
760 Spring Street, NW, Room 319
Atlanta, GA 30332-0640
(404) 894-2096
Fax: (404) 894-1192
www.georgiambdc.org |
Minority Business Development Agency
1401 Constitution Avenue,
N.W.
Washington, DC 20230
www.mbda.gov |
Small Disadvantaged Business Certification
The SBA certifies firms as small disadvantaged business (SDB’s). The certification process will categorize a small business as “disadvantaged’ only if an SBA review finds the firm is owned and controlled by someone who is socially and economically disadvantaged. Companies participating in the SBA 8(a) program are already considered SDB’s and will not undergo a second review.
Once a firm is certified SDB, it will be eligible for preference under new federal procurement regulations. The main preference is a “price evaluation adjustment” of up to 10% for SDB’s bidding as prime contractors. The preference will apply only to those industries where disadvantaged companies are underutilized.
The SBA’s Office of Small Disadvantaged Business Certification will certify the ownership and control of all small companies that apply, and decide protests and appeals. The office will also establish a nationwide network of private certifiers who will help the SBA process applications.
Revised federal rules will make it easier for business owners who are not members of minority groups to become SDB’s by demonstrating their disadvantage.
Applications for SDB are available at the SBA Georgia District Office. For additional information contact the SBA at: (404) 331-0100, ext. 504.
Service Corps of Retired Executives (SCORE)
SCORE is free counseling for small businesses. A non-profit association of retired executives with years of counseling experience, brains, ideas, skills and experience. Volunteers are ready to share their skills, insight and knowledge of resource availability.
www.scoreatlanta.org
Fred Abood
233 Peachtree Street, NE
Suite 1900, Harris Tower
Atlanta, GA 30303
(404) 331-0121
Fax (404) 331-0138
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North Atlanta Office
North Atlanta National Bank Building
10500 Old Alabama Road Conn.
Alpharetta, GA 30022
(678) 277-8437 |
Small Business Development Centers
Small Business Development Centers (SBDC’s) are one of the ways that the state of Georgia meets the needs of small business owners and prospective business owners when they have questions about the fundamentals of business operations. Examples of the kind of assistance provided include: business plan development, market research, record keeping and accounting, cash flow analysis, financing alternatives and international trade. The University of Georgia System also provides specialized information and assistance to businesses on topics ranging from agriculture to industrial engineering. They are funded by both the University System and the U.S. Small Business Administration.
Atlanta/Clark Atlanta University
Sajata Strong,
Area Director
School of Business Administration
223 James P. Brawley Drive SW
Atlanta, GA 30314
(404) 880-8483
FAX (404) 880-8458
www.sbdc.cau.edu
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Atlanta/Georgia State University
Bernie Meineke,
Area Director
University Plaza
Atlanta, GA 30303-3083
(404) 651-3350
FAX (404) 651-1035
www.gsu.edu/sbdc |
Atlanta/Georgia Statewide Minority Business Development Center
Donna Ennis, Project Director
Georgia Tech Economic Development Institute
760 Spring Street, NW
Room 319
Atlanta, GA 30332
(404) 894-2096
FAX (404) 894-1192
Website: www.georgiaMBDC.org
georgiaMBDC@EDIgatech.edu
State Office – Hank Logan, State Director
University of Georgia
Chicopee Complex
1180 East Broad Street
Athens, GA 30602-5412
(706) 542-6762
FAX: (706) 542-6776
hlogan@sbdc.ugu.edu |
Small Business Investment Companies
Small Business Investment Companies (SBIC’s) exist to supply equity capital, long-term loans and management assistance to qualifying small businesses. The privately owned and operated SBIC’s use their own capital and funds borrowed from the Small Business Administration (SBA) to provide financing to small businesses in the form of equity securities and long-term loans. SBIC’s are for profit and select small businesses to be financed within the Rules and Regulations set by SBA. Section 301(d) SBIC’s (also known as Specialized SBIC’s) are a specialized type of SBIC that provide assistance solely to small businesses owned by socially or disadvantaged persons.
SBIC’s invest in a broad range of industries. Some SBIC’s seek out small businesses with known products or services because of the strong growth potential of such firms. Some SBIC’s specialize in the field in which their management has special competency. Most SBIC’s, however, consider a wide variety of investment opportunities.
Only firms defined by the SBA as “small” are eligible for SBIC financing. The SBA defines a company as small when its net worth is $18 million or less, and its average net (after tax) income for the preceding two years does not exceed $6 million. For businesses in industries for which the above standards are too low, alternative size standards are available. In determining whether a business qualifies, all of the business’ parents, subsidiaries, and affiliates are considered. Listed below are active SBIC’s in Atlanta.
Cordova Enhanced Fund, L.P.
2500 North Winds Parkway, Suite 475
Alpharetta, GA 30004
(678) 942-0300
Paul Dibella, Ralph Wright
www.cordovaventures.com
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EGL/NatWest Equity Partners USA, L.P.
3495 Piedmont Road
Building Ten, Suite 412
300 Embassy Row, Suite 630
Atlanta, GA 30305
(404) 949-8303
Salvatore Massaro, Manager
www.eglventures.com |
First Growth Capital, Inc.
P.O. Box 815,
Best Western Hotel
I-75 & GA 42
Forsyth, GA 31029
(478) 994-9260
Vijay Patel, President |
Global Capital Funding Group, L.P.
106 Colony Park Drive, Suite 900
Cumming, GA 30040
(678) 947-0028
Brad Thompson |
Surety Bond Guarantee Program
SBA’s Surety Bond Guarantee Program enables small contractors to obtain the surety bonds necessary to compete for government and non-government contracts. SBA’s guarantee permits a small business contractor to obtain a surety bond when the company might otherwise be unable to obtain a bond. This program makes the bonding process accessible to small and emerging contractors, thus enabling them to establish a bonded tract record.
Any contractor meeting SBA’s size standard requirement can apply for an SBA surety guarantee. In general, a firm is classified as “small” if the company’s average annual receipts over the last three fiscal years do not exceed $6 million.
You need to consider the following before applying:
- The face value of an SBA Guarantee contract cannot exceed the sum of $2 million.
- SBA will guarantee a surety 70-90% of the face value of a contract depending on the program and the social/disadvantaged status of the applicant.
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Costs involved are:
- The premium charged by the surety.
- An SBA charge of $6.00 per every $1,000 of the contract amount (final bonds only).
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For Surety Bond information on the Internet, use this web site: www.sba.gov.org
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Did you know, air travelers can reach 80% of the US population within a 2 hour flight from Atlanta?
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