A bill to amend the Small Business Investment Act of 1958 to increase the authorization for the Surety Bond Guarantee Fund.

(Measure passed Senate, amended)

Amends the Small Business Investment Act to increase the authorization for the Surety Bond Guarantee Fund by $31,500,000, (from $56,500,000 to $88,000,000).

Revises the definition of the term guarantee to mean that the Small Business Administration will pay to sureties a sum not to exceed 90 percent of any loss incurred by reason of its execution of a bond.

Requires that payments made by the Administration after the default or bankruptcy of a surety shall be made directly to the obligee and not to the surety's trustee in bankruptcy.

Increases to $25,000 the minimum amount of any contract on a public works building requiring a bond.