Pandemic Darlings The pandemic economy, in original documents
Home Source documents SBA Information Notice 5000-853438: Clarification of Claim-Related Notification Requirements

SBA Information Notice 5000-853438: Clarification of Claim-Related Notification Requirements

Summary

SBA Information Notice, Control No. 5000-853438, effective February 21, 2024, to all SBA Surety Partners, clarifying claim-related notification requirements. It clarifies which claim-related events trigger notification to SBA's Office of Surety Guarantees under 13 CFR 115.35, to reduce unnecessary notifications by Surety Partners. It states that Surety Partners are required to submit an SBA Form 994H to report only the events it lists for a guaranteed bond.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                          SBA Information Notice


TO:    All SBA Surety Partners                                                     CONTROL NO.: 5000-853438

SUBJECT: Clarification of Claim-Related                                            EFFECTIVE: February 21, 2024
Notification Requirements




The purpose of this notice is to clarify which claim-related events trigger notification requirements
to SBA’s Office of Surety Guarantees, found at 13 CFR 115.35. The clarification will mitigate
unnecessary notification actions taken by SBA Surety Partners.

SBA Surety Partners are required to submit an SBA Form 994H to report only the following events
with a bond guaranteed by SBA.

   •   Legal action: A legal action under the bond has been initiated.
   •   Declaration of default: The Obligee has declared the Principal to be in default under the
       Contract.
   •   Claim reserve established: The Surety has established a claim reserve for the bond.
   •   Adverse information: The Surety has received any adverse information concerning the
       Principal's financial condition or possible inability to complete the project or to pay laborers
       or suppliers.
   •   Claim paid: The Surety has paid a claim for the bond and is seeking reimbursement.
   •   Substantial status change: A substantial change in the status of the claim or the amount of
       loss reserve has occurred.
   •   Status report: After the most recent submission, a status report submission is due in 6
       months.

A Surety should not notify SBA until the Surety’s investigation is complete, a claim against the
bond is substantiated or indisputable, or an action is determined to be required that will impact
SBA’s guarantee.

Questions concerning this Notice may be directed to SuretyBonds@sba.gov.

Jermaine Perry
Director, Office of Surety Guarantees.




 PAGE 1 of 1                                                                                    EXPIRES: 2/1/25
 SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
 Must be accompanied by SBA Form 58

                                     Federal Recycling Program   Printed on Recycled Paper

File and source

File
2024-02_5000-853438.pdf
Size
102,745 bytes
SHA-256
1bf017883602fd3f14e8f57fdb21c56d16b40e29db370f8f7c9c2378366c16e9
Our copy
2024-02_5000-853438.pdf
Original
www.sba.gov
Back to top