119-s2232

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2232 Reported in Senate

    (RS) ]

<DOC>

 Calendar No. 135
119th CONGRESS
 1st Session
 S. 2232

 To expand the surety bond program under the Small Business Investment 
 Act of 1958, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 9, 2025

 Mr. Markey introduced the following bill; which was read twice and 
 referred to the Committee on Small Business and Entrepreneurship

 July 30, 2025

 Reported by Ms. Ernst, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
 in italic]

_______________________________________________________________________

 A BILL

 To expand the surety bond program under the Small Business Investment 
 Act of 1958, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>

SECTION 1. SHORT TITLE.</DELETED>

<DELETED> This Act may be cited as the ``Expanding the Surety Bond 
Program Act of 2025''.</DELETED>

<DELETED>

SEC. 2. EXPANSION OF THE SURETY BOND PROGRAM.</DELETED>

<DELETED> Part B of title IV of the Small Business Investment Act of 
1958 (15 U.S.C. 694a et seq.) is amended--</DELETED>
 <DELETED>

    (1) in 

section 411 (15 U.S.C. 694b)--</DELETED>
 <DELETED>
        (A) in subsection

    (a)

    (1) --</DELETED>
 <DELETED>
            (i) in subparagraph
        (A) , by 
 striking ``$6,500,000'' and inserting 
 ``$20,000,000''; and</DELETED>
 <DELETED>
            (ii) by striking subparagraph
        (B) and inserting the following:</DELETED>
 <DELETED> ``
        (B) The Administrator may guarantee a 
 surety under subparagraph
        (A) for a total work order or 
 contract in an amount that does not exceed 
 $20,000,000.''; and</DELETED>
 <DELETED>
        (B) in subsection

    (e) --</DELETED>
 <DELETED>
            (i) in paragraph

    (1) , by striking 
 the comma at the end and inserting a 
 semicolon;</DELETED>
 <DELETED>
            (ii) in paragraph

    (2) , by striking 
 ``$6,500,000,'' and inserting ``the amount 
 described in subparagraph
        (A) or
        (B) of 
 subsection

    (a)

    (1) , as applicable;''; 
 and</DELETED>
 <DELETED>
            (iii) in paragraph

    (3) , by 
 striking ``, or'' and inserting ``; or''; 
 and</DELETED>
 <DELETED>

    (2) in 

section 412 (15 U.S.C. 694c)--</DELETED>
 <DELETED>
        (A) in subsection

    (a) , in the third 
 sentence, by striking ``, excluding administrative 
 expenses,'';</DELETED>
 <DELETED>
        (B) by redesignating subsection

    (b) as 
 subsection
            (c) ; and</DELETED>
 <DELETED>
            (C) by inserting after subsection

    (a) the 
 following:</DELETED>
<DELETED> ``

    (b) Not more than 5 percent of the amount in the fund 
described in subsection

    (a) on the first day of each fiscal year may be 
obligated during that fiscal year to cover costs incurred by the 
Administration in connection with the management and administration of 
this part, including costs related to information technology and 
systems, personnel, outreach activities, and relevant 
contracts.''.</DELETED>

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Expanding the Surety Bond Program 
Act of 2025''.

SEC. 2. EXPANSION OF THE SURETY BOND PROGRAM.

 Part B of title IV of the Small Business Investment Act of 1958 (15 
U.S.C. 694a et seq.) is amended--

    (1) in 

section 411 (15 U.S.C. 694b)--
        (A) in subsection

    (a)

    (1) --
            (i) in subparagraph
        (A) --
            (I) by striking ``$6,500,000'' and 
 inserting ``$18,000,000''; and
            (II) by inserting ``, subject to 
 the exception in subparagraph
        (B) '' 
 after ``United States Code''; and
            (ii) by striking subparagraph
        (B) and 
 inserting the following:
 ``
        (B)
            (i) In any fiscal year in which the Administrator submits a 
formal request, including budget justification documents submitted by 
the Administrator to Congress, for supplemental funds under 

section 412
            (d) , the amount described in subparagraph
        (A) shall be reduced by 33 
percent.
 ``
            (ii) The limit described in clause
            (i) shall apply until the 
first of either--
 ``
            (I) 12 months after the date on which the Administrator 
 submits the formal request described in that clause; or
 ``
            (II) 150 days after the date on which--
 ``

    (aa) the requested funds are provided, and the 
 Administrator attests that the fee collection 
 activities of the Administration are sufficient to 
 maintain a deficit-neutral revolving fund; or
 ``

    (bb) the Administrator notifies Congress that 
 funds are no longer required and attests that the fee 
 collection activities of the Administration are 
 sufficient to maintain a deficit-neutral revolving 
 fund.
 ``
            (iii) After the expiration of the period described in clause
            (ii) , the limit described in clause
            (i) shall revert to the amount 
designated in subparagraph
        (A) .''; and
        (B) in subsection

    (e) --
            (i) in paragraph

    (1) , by striking the comma 
 at the end and inserting a semicolon;
            (ii) in paragraph

    (2) , by striking 
 ``$6,500,000,'' and inserting ``the amount 
 described in subparagraph
        (A) or
        (B)
            (i) of 
 subsection

    (a)

    (1) , as applicable;''; and
            (iii) in paragraph

    (3) , by striking ``, 
 or'' and inserting ``; or'';

    (2) in 

section 412 (15 U.S.C. 694c)--
        (A) in subsection

    (a) , in the third sentence, by 
 striking ``, excluding administrative expenses,'';
        (B) by redesignating subsection

    (b) as subsection
            (c) ;
            (C) by inserting after subsection

    (a) the 
 following:
 ``

    (b) Not more than 2 percent of the amount in the fund described 
in subsection

    (a) on the first day of each fiscal year may be obligated 
during that fiscal year to cover costs incurred by the Administration 
in connection with the management and administration of this part, 
including costs related to information technology and systems, outreach 
activities, and relevant contracts.''; and
            (D) by adding at the end the following:
 ``
            (d) If the Administrator notifies any committee of the Senate or 
the House of Representatives that supplemental funding is necessary to 
carry out the Surety Bond Program authorized under 

section 411

    (a)

    (3) , 
the Administrator shall, on the same date, notify in writing the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives regarding 
the need for the supplemental funds.''; and

    (3) by adding at the end the following:

``

SEC. 413. REPORT.

 ``

    (a) Small Business Administration.--Not later than 90 days after 
the first day of each fiscal year, the Administrator shall submit to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives a 
report covering the period of the previous fiscal year describing the 
status and activities carried out under this part and the financial 
health of the revolving fund created under 

section 412

    (a) , which shall 
include--
 ``

    (1) with respect to guarantees under this part--
 ``
        (A) the total dollar value in the aggregate among 
 all sureties;
 ``
        (B) the total dollar value issued by sureties 
 participating in the Prior Approval Program;
 ``
            (C) the total dollar value issued by sureties 
 participating in the Preferred Surety Bond Guarantee 
 Program authorized under 

section 411

    (a)

    (3) ;
 ``
            (D) the average bond size; and
 ``
        (E) the number of issued bonds that exceed the 
 limits established under subparagraphs
        (A) and
        (B) of 
 

section 411

    (a)

    (1) ;
 ``

    (2) with respect to claims paid--
 ``
        (A) the total dollar value of claims paid in the 
 aggregate;
 ``
        (B) the total dollar value of claims originating 
 from bonds issued by sureties participating in the 
 Prior Approval Program and the number of such claims; 
 and
 ``
            (C) the total dollar value of claims originating 
 from bonds issued by sureties participating in the 
 Preferred Surety Bond Guarantee Program authorized 
 under 

section 411

    (a)

    (3) and the number of such claims.
 ``

    (3) information on the solvency of the revolving fund, 
 including--
 ``
        (A) the revolving fund balance at the end of the 
 reporting period;
 ``
        (B) net cash flow;
 ``
            (C) administrative expenses incurred; and
 ``
            (D) the revolving fund balance at the end of the 
 reporting period, adjusted for administrative expenses 
 under subparagraph
            (C) ;
 ``

    (4) the number of sureties participating in the Prior 
 Approval Program;
 ``

    (5) the number of sureties participating in the Preferred 
 Surety Bond Guarantee Program authorized under 

section 411

    (a)

    (3) ; and
 ``

    (6) information on administrative expenses, including--
 ``
        (A) a description of administrative expenses 
 claimed from the revolving fund under 

section 412

    (b) as 
 of the end of the reporting period; and
 ``
        (B) the total cost of administrative expenses 
 claimed.
 ``

    (b) Government Accountability Office.--Not later than 270 days 
after the date of enactment of the Expanding the Surety Bond Program 
Act of 2025, the Comptroller General of the United States shall submit 
to the Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of Representatives a 
report on the current processes of the Small Business Administration 
for approving applicants to the Surety Bond Program, including 
recommendations for improving program efficiency and simplifying 
paperwork requirements.''.
 Calendar No. 135

119th CONGRESS

 1st Session

 S. 2232

_______________________________________________________________________

 A BILL

 To expand the surety bond program under the Small Business Investment 
 Act of 1958, and for other purposes.

_______________________________________________________________________

 July 30, 2025

 Reported with an amendment