The new-contractor catch-22
It feels like a trap. You need a track record to get bonded, but you need bonds to land the work that builds that track record. New contractors hit this wall constantly, and it stops a lot of good operators before they start.
The good news: it is not actually a dead end. You do not need years of history to get your first bond, and you do not have to solve contract bonding before you are licensed. You start in the right place and build from there.
Start with the license bond
The California contractor license bond is very placeable, even when you are brand new or your credit is thin. It is the bond every licensed contractor carries, and the market writes it for new entrants every day. So that is where you start.
- It is the entry point. Getting the license bond placed is the first proof that you are bondable, and it gets you licensed and working.
- Thin credit is workable. A low or short credit file usually means a higher rate, not a decline. See hard-to-place surety bonds for how we place tougher files.
Read the full contractor license bond page for what it covers and how the premium works.
Contract bonds: the SBA program and a broker
Bid, performance, and payment bonds take more underwriting, and that is exactly where new contractors need help. The SBA Surety Bond Guarantee programis built for this: the SBA backs a share of the surety's loss, so sureties can write small, new, and credit-challenged contractors who would not qualify for standard surety credit.
On top of that, a broker builds your bonding program over time. We start with what the market will write today, then grow your single-job and aggregate capacity as your history builds. We will not promise guaranteed approval, but we work your file and shop the markets that write growing contractors.