Preferred Surety Bond Guarantee Program Act of 1988

[AI summary unavailable — showing source text] Preferred Surety Bond Guarantee Program Act of 1988 - Title I: Amendments to the Small Business Investment Act of 1958 - Amends the Small Business Investment Act of 1958 to empower the Small Business Administration to: (1) enter into surety bond guarantee commitments under terms that vary on the basis of SBA experience with the particular surety; and (2) engage in a pilot program under which it may authorize any surety meeting specified standards to issue, monitor, and service guarantee bonds (including making indemnification payments against losses in avoiding breach) without further SBA approval. (Current law requires prior SBA approval of bond underwriting and administration decisions.) Revises SBA guarantee liability limits to equal not more than: (1) 70 percent of any loss paid by a surety authorized to issue bonds without further SBA approval; and (2) 90 percent of both losses paid by sureties needing SBA approval for bond issuance and losses associated with bonds issued to small businesses owned and controlled by socially and economically disadvantaged individuals. Disclaims SBA indemnification liability if a surety breaches material provisions of the guarantee agreement or …