Amends the Small Business Investment Act of 1958 to make permanent the increase from $2 million to $5 million in the surety bond guaranty limit of the Small Business Administration (SBA).
Relieves the SBA from reimbursing the surety if: (1) the surety obtained such guarantee or agreement, or applied for such reimbursement, by fraud or material misrepresentation; (2) the total contract amount at the time of bond execution exceeds $5 million; (3) the surety has breached a material term or condition of such guarantee agreement; or (4) the surety has substantially violated regulations promulgated by the SBA.