This advanced technology makes the SBA BGP’s processes more efficient for NASBP bond producers who submit their clients’ Schedule of WIP information to help their clients obtain an SBA-backed surety bond.

NASBP Third Vice President Robert Coon said, “Using XBRL standards for SBA WIP submissions is a great first step to streamlining the underwriting process and improving our support of small construction businesses. XBRL will help move the underwriting process into the 21st Century and help us provide our clients with much faster and more dependable response times,” added Coon, who is Vice President-Surety, Scott Insurance. See the NASBP Press Release.

“NASBP has been encouraging greater automation for years, and so we are elated with SBA’s decision to embrace the automation of WIP report data, which will help all bonding stakeholders,” said Mark McCallum, CEO, NASBP. “We look forward to working towards expanding the use of digital data standards into other aspects of the surety bonding process.”

In the SBA press release, SBA Administrator Isabella Casillas Guzman stated, “SBA’s Surety Bond Guarantees are critical for small businesses to be able to qualify, compete for, and complete major projects—including many of the improvement projects being funded as part of President Biden’s $1.2 trillion Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law). Streamlining and simplifying these Work-in-Process submissions will make it easier for more small businesses—especially those in historically underserved communities—to participate in the SBG program, seize these infrastructure opportunities, and continue to lead the way in building a stronger, more equitable, and resilient American economy,” Guzman added.

“We’re very pleased to roll out this new process. The SBA’s Surety Bond Guarantees are going to drastically change the way small businesses gain access to funding opportunities,” said Associate Administrator for the SBA Office of Capital Access, Patrick Kelley, who was also quoted in the SBA release. “Ultimately, these small business-friendly improvements will be a game-changer for our nation’s small business owners.”

NASBP is a member and longtime supporter of XBRL and its efforts to streamline data transmission and help facilitate digitization of surety bonding processes and delivery of contract bonds.

“NASBP is a strong advocate for automation, and we appreciate its support in working with us and the SBA to move this project ahead,” said Campbell Pryde, President and CEO, XBRL US. “Digitizing the WIP report will improve efficiencies for bond agents, sureties, contractors, and the SBA.”

Chair of the NASBP Automation and Technology Committee, Michael Lischer, said “Financial data, including the WIP report, are critical factors in gauging the financial health of a business and in making that important bonding decision.” Lischer is Vice President, Director of Surety, IMA Financial Group.

The SBA Program’s new capability provides bond producers and others a free, Microsoft Excel-based application that can be used to prepare and submit or update an existing WIP report in machine-readable format, directly to the SBA. Those using this new application will no longer need to key data manually into an online form; they can simply update an existing WIP or cut and paste data into a spreadsheet for a new WIP. All the information contained in the XBRL WIP report is identical to the information contained in the current SBA Form 994F. The only difference between the two forms is the formatting. The XBRL WIP report functions as a computer-readable spreadsheet specifically designed to be translated by the SBA computer system, Capital Access Financial System (CAFS). By using the XBRL WIP report, a surety partner will not need to manually enter the information into CAFS.

The WIP XBRL data standards, called the WIP Taxonomy, was developed by the XBRL US Surety Working Group, a committee of the XBRL US, a nonprofit standards organization dedicated to improving reporting efficiencies for businesses and governments. Sponsoring organizations in the Working Group include NASBP, Altova, Construction Progress Coalition, Crowe LLP, IAT Surety, Liberty Mutual Surety, Travelers, and Zurich Insurance. The Surety & Fidelity Association of America participates as an observer.

For questions regarding the SBA Bond Program, visit the Program website at www.sba.gov/osg. For assistance with logging into SBA’s CAFS system, contact the CAFS Help Desk via email at cls@sba.gov

Find out more about XBRL in context to the surety industry in these NASBP communications:

• NASBP Surety Bond Quarterly (SBQ) magazine Spring 2018 article, “XBRL Exec Explains How Uniform Data Standards Will Impact Bond Producers and Their Interactions with Clients and Sureties.”
• SBQ Fall 2018 digital issue’s SuretyWave.com Tech Talk video interview with
  Michelle Savage of XBRL. 

Look out for a NASBP Blog from Savage coming soon that will provide a more detailed explanation of the SBA announcement and what it means for bond producers, sureties, and small contractors participating in the SBA Program.