Part B · Startup-relevant scheme
Federal Bonding Program (Federal Bonding)
Department of Labor
Other
Growth / Scaling
Created in 1966, the Federal Bonding Program provides no-cost fidelity bonds covering an employer's first six months with a new hire from a high-risk-to-hire population, insuring against employee dishonesty such as theft, forgery, and embezzlement.
Type of support
Other
Best suited for
Growth
Headline amount
N/A — free insurance coverage, not direct funding
How much
Free (typically up to $5,000 in bond coverage)
Objectives
Remove the specific insurance-risk objection employers raise about hiring justice-involved individuals and other job seekers who face structural hiring barriers.
Who can apply?
- Employer hiring a job seeker who is otherwise not eligible for standard commercial fidelity bonding — most commonly justice-involved individuals.
- No cost to either the employer or the job seeker.
What do you get?
- 100% fidelity-bond coverage with no deductible for the employer.
- Covers the first six months of employment at no cost.
- 70,000+ bonds issued since inception with a 99% success rate (1% of claims processed).
How to apply
Contact your state's Federal Bonding Program coordinator or local American Job Center before the hire starts.
Key links
Details as most recently confirmed against the official source linked above. Deadlines, amounts and windows change — verify on the official portal before applying.