SBA Names CBI In Top 10 Bond Agencies for FY2017

Joshua EtemadiBonds, News

The U.S. Small Business Administration announced its most active surety companies and agencies for fiscal year (FY) 2017, which contributed to increases in the Surety Bond Guarantee (SBG) Program’s activity. Construction Bonds, Inc. (CBI) was named one of the top 10 performing bond agencies for 2017. The standing was determined by the number of bonds written through the SBG Program. The mission of the SBA’s Office of Surety Guarantees is to provide and manage surety bond guarantees for qualified small and emerging businesses. Congratulations CBI! Read the full release here. The U.S. Small Business Administration announced its most active surety companies and agencies for fiscal year (FY) 2017, which contributed to increases in the Surety Bond Guarantee (SBG) Program’s activity. …

Trump Tax-Cut Proposal for Small Construction Businesses is Unclear

Joshua EtemadiBonds, Construction, News

Tax bills for most small construction companies would fall under a broad tax-reform outline unveiled on Sept. 27 by the Trump administration and congressional Republicans. The proposal calls for cutting the corporate tax rate to 20% from 35%. Perhaps most important for small construction firms, the tax rate for pass-through businesses would be limited to 25%. Pass-through entities, such as sole proprietorships, partnerships and S-corporations, are taxed at individual, not corporate, rates, which hurts many construction companies in those categories. Tell me more >>>

Contractors Fronting Money for Materials Can Lose Investment

Joshua EtemadiBonds, News, Risk Management

Article provided by Cohen Seglias Pallas Greenhall & Furman PC Have you ever been in a situation where your subcontractor or fabricator did not have the financial ability to purchase material needed for a project? Have you ever offered your assistance by way of either directly purchasing the material and providing it to the subcontractor/fabricator or advancing funds to the subcontractor/fabricator to allow for the purchase? While this arrangement has its advantages, contractors should be aware of their exposure, particularly if the subcontractor/fabricator has financial issues down the road. Even though a contractor fronts the funds to purchase the materials, it could lose its interest in those materials to the subcontractor/fabricator’s lender, especially if that lender holds a security interest …