(a) Selection of PSB Sureties. SBA's selection of PSB Sureties will be guided by, but not limited to, these factors:
- (1) An underwriting limitation of at least $6,500,000 on the U.S. Treasury Department list of acceptable sureties;
- (2) An agreement that the Surety will neither charge a bond premium in excess of that authorized by the appropriate State insurance department, nor impose any non-premium fee unless such fee is permitted by applicable State law and approved by SBA.
- (3) Premium income from contract bonds guaranteed by any government agency (Federal, State or local) of no more than one- quarter of the total contract bond premium income of the Surety;
- (4) The vesting of underwriting authority for SBA guaranteed bonds only in employees of the Surety;
- (5) The rating or ranking designations assigned to the Surety by recognized authority.
- (b) Admission of PSB Sureties. A Surety admitted to the PSB program must execute a PSB Agreement before approving SBA guaranteed bonds. No SBA guarantee attaches to bonds approved before the D/SG or designee has countersigned the Agreement.
[61 FR 3271, Jan. 31, 1996, as amended at 66 FR 30804, June 8, 2001; 72 FR 34600, June 25, 2007; 81 FR 23566, Apr. 22, 2016]