This legislation, titled the "Expanding the Surety Bond Program Act of 2025," significantly increases the maximum bond guarantee amount available through the Small Business Administration's surety bond program. The bill raises the limit from the current $6,500,000 to $18,000,000, aiming to provide greater bonding capacity for small businesses. However, it introduces a new provision where this maximum amount will be temporarily reduced by 33 percent if the Administrator formally requests supplemental funds from Congress. This reduction would last for a specified period, either 12 months after the request or 150 days after funds are provided and the Administrator attests to sufficient fee collection.

The bill also implements several changes to the program's administration and oversight. It establishes a cap, limiting administrative expenses from the program's revolving fund to not more than 2 percent of the fund's balance at the start of each fiscal year. Furthermore, the Administrator is now required to provide written notification to specific Congressional committees when supplemental funding is deemed necessary for the Surety Bond Program. These measures aim to enhance fiscal responsibility and transparency within the program.

To ensure ongoing accountability, the legislation mandates new reporting requirements. The Small Business Administration must submit an annual report to Congress detailing the program's status, activities, and the financial health of its revolving fund, including information on guarantees, claims paid, and administrative expenses. Additionally, the bill directs the Government Accountability Office to conduct a one-time report within 270 days of enactment, evaluating the SBA's applicant approval processes and recommending improvements for program efficiency and paperwork reduction.