§ 115.30 Submission of Surety's guarantee application.

(a) Legal effect of application. By submitting an application to SBA for a bond guarantee, the Prior Approval Surety certifies that the Principal meets the eligibility requirements set forth in § 115.13 and that the underwriting standards set forth in § 115.15 have been met. (b) SBA's determination. SBA's approval or decline of a guarantee application is made in writing by an authorized SBA officer. The officer may provide telephone notice before the Prior Approval Surety receives SBA's guarantee approval form if the officer has already signed the form. In the event of a conflict between the telephone notice and the written form, the written form controls. (c) Reconsideration-appeal of SBA determination. A Prior Approval Surety may request reconsideration of a decline from the SBA officer who made the decision. If the decision on reconsideration is negative, the Surety may appeal to an individual designated by the D/SG. If the decision is again adverse, the Surety may appeal to the D/SG, who will make the final decision. (d) Prior Approval Agreement. To apply for a bond guarantee, a Prior Approval Surety must submit a Surety Bond Guarantee Agreement (SBA Form 990) and select one of the following application types: (1) Regular. A Prior Approval Surety may complete and submit a Surety Bond Guarantee Agreement (SBA Form 990) indicating a Regular application type to SBA for each Bid Bond or Final Bond. This Form must be approved by SBA prior to the Surety's Execution of the bond. The guarantee fees owed in connection with Final Bonds must be paid in accordance with § 115.32. (2) Quick Bond Agreement—(i) General procedures. Except as provided in paragraph (d)(2)(ii) of this section, a Prior Approval Surety may complete and submit a SBA Form 990 indicating a Quick Bond Agreement application type for each Bid Bond or Final Bond. This form must be approved by SBA prior to the Surety's Execution of the bond. The Quick Bond application type is used only for contract amounts that do not exceed $500,000 at the time of application. The guarantee fees owed in connection with Final Bonds must be paid in accordance with § 115.32. (ii) Exclusions. The Quick Bond application type may not be used under the following circumstances: (A) The Principal has previously defaulted on any contract or has had any claims or complaints filed against it with any court or administrative agency; (B) Work on the Contract commenced before a bond was Executed; (C) The time for completion of the Contract exceeds 12 months; (D) The Contract includes a provision for liquidated damages that exceed $2,500 per day; (E) The Contract involves asbestos abatement, hazardous waste removal, or timber sales; or (F) The bond would be issued under a surety bonding line approved under § 115.33.