Surety bond companies associated with the U.S. Small Business Administration will now be able to file their claims and supporting documents electronically thanks to a significantly enhanced, web-based processing system launched by the SBA.
The new system, announced by SBA’s Office of Surety Guarantees, eliminates the need for costly, overnight shipments by surety companies, as well as paper handling, filing and storage costs for both the companies and SBA.
“This enhancement is a collaborative effort between the surety industry and SBA resulting in improved efficiency, reduction in cost to Sureties and creating an error free environment,” said Peter Gibbs, Deputy Director for the Office of Surety Guarantees.
Prior to the implementation of this electronic system, claims and other documents had to be mailed to OSG and manually processed, which involved higher costs and longer processing times. The new electronic method substantially increases efficiency and reduces claims cycle time.
The system was tested successfully with two surety companies and will be made available to all surety companies by October 22.
For more information on the new electronic claim-filing system and SBA’s Surety Bond Guarantee Program, visit http://www.sba.gov/surety-bonds.
