Small contractor guarantee program

Small contractor guarantee program
If the contractor can be qualified as a small contractor (not among the "Fortune 1,000"), the small contractor guarantee program addresses a bane of small business—getting a guarantee for the bank to support a standby letter of credit to be used as a performance bond. In some cases, this might permit utilization of at least part of the down payment for working capital purposes instead of being held as collateral for the standby letter of credit so often necessary to validate the underlying contract.
OPIC's guarantee to eligible financial institutions covers all risks up to 75 percent of the credit and is unconditional. For further protection, the contractor can apply for the 90 percent coverage afforded by the contractor's insurance policy previously described. Presumably, this guarantee would also be available for relatively short terms.

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 standby letter of credit  guarantee program  capital purposes  performance bond  letter of credit  financial institutions  insurance policy  working capital  bane  collateral  fortune  small business  insurance

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