WASHINGTON, D.C. — The U.S. Small Business Administration capped a record-setting year with a pair of announcements that underscore a dramatic expansion of federal backing for America’s small businesses, from construction sites to factory floors.
On Tuesday, the SBA said its Surety Bond Guarantee Program delivered its strongest performance ever in fiscal year 2025, guaranteeing $10.6 billion in contracts and supporting more than 2,200 small businesses nationwide. The milestone marks the largest annual total in the program’s history and a 15 percent increase over the previous record.
The program plays a critical role for small contractors and manufacturers that lack the balance sheets required by traditional sureties. By guaranteeing bonds issued by private surety companies, the SBA enables smaller firms to compete for public and private projects, assuring customers that contracts will be completed.
“In addition to surpassing the $100 billion mark in 2025 for small business lending and SBIC investment, the Trump SBA guaranteed a record $10.6 billion through our Surety Bond Guarantee Program to support small manufacturers, contractors, and other job creators across our industrial base,” SBA Administrator Kelly Loeffler said. “With historic backing from the SBA, this Administration is empowering small businesses as they meet new demands for hiring, growth, and investment made possible by the America First economic agenda.”
According to the agency, the program generated $3.4 billion in contracts for small businesses, a 19 percent increase from the prior high, while guarantees for manufacturers and fabricators jumped 36 percent year over year.
The record bond performance comes amid broader gains across SBA programs. In FY2025, the agency approved $45 billion in lending through its 7(a) and 504 loan programs to more than 85,000 businesses. When combined with capital deployed through the Small Business Investment Company and Small Business Innovation Research programs, total SBA-supported capital exceeded $100 billion for the year.
A day later, the SBA announced a sweeping modernization of the SBIC program aimed at accelerating private investment into critical industries and reducing regulatory friction. The final rule, set to take effect February 2, 2026, updates decades-old requirements governing the public-private partnership that channels private capital into small and emerging growth companies.
In FY2025, the SBIC program reached a record $53 billion in combined private capital and SBA leverage. The new rule streamlines licensing, removes outdated provisions, and clarifies eligibility standards to ensure capital flows more efficiently to businesses operating in sectors such as manufacturing, energy, food production, and advanced technologies.
“Confidence in President Trump’s pro-growth, America First agenda is driving private capital into America’s small businesses at record levels,” Loeffler said. “By modernizing decades-old regulations, this final rule strengthens our public-private partnership and ensures capital can flow more efficiently to qualified emerging growth companies.”
The rule also reduces barriers for follow-on SBIC funds seeking expedited review and aligns investment incentives with industrial priorities outlined in recent executive orders, including support for advanced technologies and critical minerals. The SBA said the changes preserve rigorous oversight while cutting unnecessary complexity.
Together, the record bond guarantees and SBIC overhaul signal an aggressive push to expand access to capital, reinforce domestic supply chains, and position small businesses as a central pillar of the nation’s industrial strategy.
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