Surety Bond Quarterly - Summer 2017 - 21

NASBP CEO Mark McCallum, left, met with Gibbs at NASBP headquarters
to discuss creation of the Bonding Across America program.

your proposal," noted Josh Etemadi,
Assistant Vice President for Construction Bonds, Inc.-A Division of Murray
Securus. "He is constantly looking
for ways to improve the program.
Peter is passionate about the SBG
Program and about the surety industry as a whole. His experience as a
CFO for a minority-owned construction company allows him to see
the varying levels of strengths and
weaknesses in small and emerging
construction businesses."
After Gibbs arrived at SBA, "he
went out to meet and greet people
and got the operations of SBA into
the mainstream after years of people thinking SBA's sureties took too
much time and were too expensive,"
said Mike Williams, President of CCI
Surety, Inc. "He was instrumental in
cutting down the paperwork, enabling
small and minority contractors to stay
in the program. Because of Peter's
hustle, drive, and desire, he was key
in helping me attract new surety companies into the SBG Program."
Program Improvements
As Acting Director, Gibbs wants to
make the SBG Program easier for
surety bond producers to use while
paying claims more quickly. Several
recent initiatives have already contributed to this effort.
Implemented in 2012, Quick Bond
Approval (or QuickApp) in the Prior
Approval program, which fast tracks
bonding applications with a $250,000
limit, has been extremely successful. "Since 2012, SBA has guaranteed approximately 6,800 bonds
using QuickApp with fewer than 50
defaults," Gibbs said. "Because of
that success, SBA is in the process

Peter Gibbs, third from right, with SBA staff.

NASBP AND SBA DELIVER BONDING
ACROSS AMERICA PROGRAMS
On May 18, NASBP and
SBA delivered three bonding awareness programs,
which were held in Denver,
CO; Seattle, WA; and
Washington, DC, as part of
an educational campaign
titled "Bonding Across
America." The programs,
specifically designed to be
rolled out quickly, introduced such topics as bonding and insurance, banking
and finance, federal assistance programs, and local procurement opportunities to small and emerging contractors. The programs are among several
initiatives that resulted from the memorandum of understanding that NASBP
and the SBA had signed in the fall of 2016.
of increasing the QuickApp limit to
$400,000." The new higher limit is
expected to take effect in 2017. The
increase/decrease threshold will
change to 25 percent, and the guarantee percentage for the Preferred
Program will increase to 80 to 90 percent to match the Prior Approval
Program. Other Program enhancements are also expected in 2017.
"QuickApp has created capacity
for small, emerging minority contractors who are challenged in some fashion," Williams said. "It's created an
opportunity for them to get into the
ballgame." Etemadi agrees, saying,
"QuickApp has been helpful to small
contractors who can't qualify for the
credit applications and don't have
their financial houses in order yet."
The Pay.gov program allowing
contractors to pay their SBA fees
with credit cards or direct withdrawal from checking accounts is
another success. "This is because

mistakes are minimized and checks
are not lost in the mail," noted Gibbs.
"Pay.gov has reduced our bond guarantee cycle time by at least one day."
"Contractors were thrilled when they
found out they could make payments
with credit cards and improve the processing time," Etemadi noted.
Although use of digital signatures
has not been adopted, now agents
and sureties are authorized to upload
facsimile copies of all documents.
"Creating a paperless environment
was a very important initiative of
mine, so I am happy SBA has eliminated costs our partners historically
incurred in getting their forms to
us in a timely manner," Gibbs said.
"Uploading documents is now mandatory and has reduced our bond guarantee cycle time by at least one day."
Launched in 2014, the General
Login System (GLS) E-Application lets
Continued on page 31

NATIONAL ASSOCIATION OF SURETY BOND PRODUCERS | WWW.NASBP.ORG

21


http://www.Pay.gov http://www.Pay.gov http://WWW.NASBP.ORG

Table of Contents for the Digital Edition of Surety Bond Quarterly - Summer 2017

NASBP Upcoming Meetings & Events
2017–2018 Executive Committee
From the CEO: Bringing Summer Heat: A Rundown of “Hot” Stuff in the Evolving World Surrounding Surety
Howard Cowan—Building on a Solid Foundation
Mitigating the Hidden Risks in the “New Normal” Construction Environment
Acting Director of the U.S. SBA Office of Surety Guarantees
Drones Take Flight in the Construction Industry
2017 AIA Contract Documents: Selected Key Changes
NASBP to Release Continuing Education Course: Joint Ventures in Construction
How Can Construction Contractors Expedite Payment on Federal Contracts?
Insurtech for Surety: The Future Is Closer than You Think!
Index to Advertisers
Surety Bond Quarterly - Summer 2017 - Intro
Surety Bond Quarterly - Summer 2017 - cover1
Surety Bond Quarterly - Summer 2017 - cover2
Surety Bond Quarterly - Summer 2017 - 3
Surety Bond Quarterly - Summer 2017 - 4
Surety Bond Quarterly - Summer 2017 - 5
Surety Bond Quarterly - Summer 2017 - 6
Surety Bond Quarterly - Summer 2017 - 2017–2018 Executive Committee
Surety Bond Quarterly - Summer 2017 - 8
Surety Bond Quarterly - Summer 2017 - From the CEO: Bringing Summer Heat: A Rundown of “Hot” Stuff in the Evolving World Surrounding Surety
Surety Bond Quarterly - Summer 2017 - Howard Cowan—Building on a Solid Foundation
Surety Bond Quarterly - Summer 2017 - 11
Surety Bond Quarterly - Summer 2017 - Mitigating the Hidden Risks in the “New Normal” Construction Environment
Surety Bond Quarterly - Summer 2017 - 13
Surety Bond Quarterly - Summer 2017 - 14
Surety Bond Quarterly - Summer 2017 - 15
Surety Bond Quarterly - Summer 2017 - 16
Surety Bond Quarterly - Summer 2017 - 17
Surety Bond Quarterly - Summer 2017 - 18
Surety Bond Quarterly - Summer 2017 - 19
Surety Bond Quarterly - Summer 2017 - Acting Director of the U.S. SBA Office of Surety Guarantees
Surety Bond Quarterly - Summer 2017 - 21
Surety Bond Quarterly - Summer 2017 - Drones Take Flight in the Construction Industry
Surety Bond Quarterly - Summer 2017 - 23
Surety Bond Quarterly - Summer 2017 - 2017 AIA Contract Documents: Selected Key Changes
Surety Bond Quarterly - Summer 2017 - 25
Surety Bond Quarterly - Summer 2017 - 26
Surety Bond Quarterly - Summer 2017 - NASBP to Release Continuing Education Course: Joint Ventures in Construction
Surety Bond Quarterly - Summer 2017 - How Can Construction Contractors Expedite Payment on Federal Contracts?
Surety Bond Quarterly - Summer 2017 - 29
Surety Bond Quarterly - Summer 2017 - 30
Surety Bond Quarterly - Summer 2017 - 31
Surety Bond Quarterly - Summer 2017 - Insurtech for Surety: The Future Is Closer than You Think!
Surety Bond Quarterly - Summer 2017 - 33
Surety Bond Quarterly - Summer 2017 - Index to Advertisers
Surety Bond Quarterly - Summer 2017 - cover3
Surety Bond Quarterly - Summer 2017 - cover4
https://www.nxtbook.com/naylor/SBPQ/SBPQ0118
https://www.nxtbook.com/naylor/SBPQ/SBPQ0417
https://www.nxtbook.com/naylor/SBPQ/SBPQ0317
https://www.nxtbook.com/naylor/SBPQ/SBPQ0217
https://www.nxtbook.com/naylor/SBPQ/SBPQ0117
https://www.nxtbook.com/naylor/SBPQ/SBPQ0416
https://www.nxtbook.com/naylor/SBPQ/SBPQ0316
https://www.nxtbook.com/naylor/SBPQ/SBPQ0216
https://www.nxtbook.com/naylor/SBPQ/SBPQ0116
https://www.nxtbook.com/naylor/SBPQ/SBPQ0415
https://www.nxtbook.com/naylor/SBPQ/SBPQ0315
https://www.nxtbook.com/naylor/SBPQ/SBPQ0215
https://www.nxtbook.com/naylor/SBPQ/SBPQ0115
https://www.nxtbook.com/naylor/SBPQ/SBPQ0414
https://www.nxtbook.com/naylor/SBPQ/SBPQ0314
https://www.nxtbook.com/naylor/SBPQ/SBPQ0214
https://www.nxtbookmedia.com