Florida Contractor Practice Exam

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Prepare for the Florida Contractor Exam with practice tests featuring multiple choice questions and answers. Enhance your knowledge to succeed in various categories of contractor licensing in Florida.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the maximum bond amount for an SBA guaranty program?

$2,000,000
$1,500,000
$1,250,000
$1,000,000

The correct answer is: $2,000,000

The maximum bond amount for an SBA (Small Business Administration) guaranty program is indeed $2,000,000. This figure reflects the SBA's commitment to facilitating access to bonding for small businesses, allowing them to secure contracts that require bonding. This amount is significant because it enables small contractors and service providers to compete for larger projects that they might otherwise be excluded from due to bonding requirements. The higher bond limit also encourages diversity in the contractor pool, enabling small businesses, which might not have extensive financial histories or resources, to participate in projects they are capable of executing. By establishing a maximum bond amount of $2,000,000, the SBA aims to ensure that small businesses can adequately secure the necessary financial backing to undertake substantial contracts while minimizing risk for project owners and stakeholders.