POLISCOPE
Back to feed
FEDERALhearing transcript

Hearing on SBA Bond Guarantees and Infrastructure Projects

Original title: LEVERAGING THE INFRASTRUCTURE INVESTMENT AND JOBS ACT: THE ROLE OF THE SBA'S BOND GUARANTEE PROGRAM

January 1, 2022

Track this bill to get notified when it advances a stage. One tap to stop, anytime.

The Frame

What this does

This hearing explores how small construction and service firms can access the financial guarantees necessary to bid on federal infrastructure projects, potentially impacting the volume of small business participation in national construction contracts.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Small construction businesses

These businesses require surety bonds to bid on federal infrastructure contracts.

Surety bond companies

These companies issue the bonds and utilize SBA guarantees to mitigate their financial risk.

What changed

Last recorded activity January 1, 2022.

What's next

Next step not available in the current record.

Summary

The House Committee on Small Business held a hearing to discuss how the Small Business Administration's (SBA) Surety Program can help small businesses participate in projects funded by the Infrastructure Investment and Jobs Act. The committee heard testimony from industry experts and business owners regarding the role of these bonds in securing federal contracts.

Key Facts

  • The hearing focused on the intersection of the Infrastructure Investment and Jobs Act and the SBA's Surety Bond Guarantee Program.
  • Surety bonds are financial instruments required for many federal construction contracts to guarantee performance.
  • The committee received testimony from four witnesses representing surety bond producers, insurance associations, construction firms, and economic policy research.
  • The hearing took place on July 27, 2022, in the Rayburn House Office Building.
  • The committee discussed the potential for small businesses to leverage federal infrastructure spending through improved access to bonding.
  • The record includes additional statements from various industry groups and constituents regarding labor shortages and business operations.

Frequently Asked Questions

What is the SBA Surety Bond Guarantee Program?
It is a program where the SBA provides guarantees to surety companies, which in turn issue bonds to small businesses that might otherwise struggle to qualify for them, allowing them to bid on government contracts.
Why are surety bonds important for infrastructure projects?
Federal law often requires contractors to provide s to guarantee that they will complete the project and pay their subcontractors and suppliers.

Why It Matters

This hearing explores how small construction and service firms can access the financial guarantees necessary to bid on federal infrastructure projects, potentially impacting the volume of small business participation in national construction contracts.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Sponsors

Show 1 more sponsor

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Infrastructure Implementation Focus

The committee is actively shifting focus from the passage of the Infrastructure Investment and Jobs Act to the practical mechanisms, like bond guarantees, required for small businesses to participate in the resulting projects.

Connected Entities

organizationSmall Business AdministrationFederal agency managing the Surety Bond Guarantee ProgramMap →
personRalph PulverWitness representing the Surety & Fidelity Association of AmericaMap →
personAlan GravelWitness and President of Willow Construction, LLCMap →
personNydia VelazquezChairwoman of the House Committee on Small BusinessMap →
personJoel GriffithWitness from The Heritage FoundationMap →
personBlaine LuetkemeyerRanking Member of the House Committee on Small BusinessMap →
personPeter GibbsWitness representing the National Association of Surety Bond ProducersMap →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance45
    How much this matters to a regular citizen
  • Controversy15
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz10
    Current news / social attention level

Publisher tools

Share or embed this record

POLISCOPE publisher tools

Share or embed this record