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Statewide Bond Assistance Program: Eligibility Guidelines

Requirements:

  • Applicants must be located in Colorado and be a small business
    • That includes businesses owned by women, minorities, veterans, members of the LGBTQ+ community, and persons with disabilities
  • At least two years of business operations
  • Bond line or project size generally ranges between $50k - $3 million
  • Only one open SBAP guarantee contract at a time
  • All state insurance and license requirements must be current
  • Maximum gross revenue not to exceed $5 million in the most recent fiscal or calendar year
  • Past performance in the industry and previous experience completing similar work to the contract opportunity being pursued
  • Applicants must be able to provide the following financial statements: balance sheet, statement of cash flow, income statement, and quarterly profit and loss statements
    • The statements should be prepared on an accrual or percentage-of-completion basis
  • Applicants must provide a detailed accounts receivable and accounts payable aging schedule
  • Applicants must provide a current work-in-progress schedule listing all projects, both bonded and non-bonded
  • No previous surety losses
  • No previous contract debarments or convictions of bid-related crimes
  • No unpaid judgments, warrants, or liens. Satisfied judgments are acceptable
  • No unpaid, pending, or open tax liens
  • No arrears in child support
  • No recent, pending, or open bankruptcy filings
  • Must disclose all felony convictions in the last five years
  • All persons required to sign a General Indemnity Agreement (owner, spouse, investors, and principals owning more than 5% interest and their spouses) should not have poor personal and/or corporate credit history
    • All parties must provide a credit report to the surety during the applicant's financial review
  • Applicants must enroll in a bonding education program
    • To maintain eligibility, applicants must receive a completion certification within the first year of participation in the SBAP
    • Failure to complete a bonding education program will result in a suspension from the SBAP until the requirements are met
    • Certifications should be submitted to the Statewide Equity Office at dpa_supplierdiversityhelp@state.co.us

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