```
Small Business: Responses to Survey on Construction Firms' Access to
Surety Bonds (Letter Report, 06/26/95, GAO/RCED-95-173S).

Federal law requires contractors to provide surety bonds on all federal
construction contracts worth more than $25,000.  Surety bonds guarantee
that should a bonded contractor default, a construction project will be
completed and the contractor's employees and material suppliers will be
paid.  Most state and local governments and some private sector lenders
also require construction firms to be bonded.  Some small construction
firms argue that surety companies' decisions to approve or deny bonds
can seem arbitrary and can impede the growth of small firms, especially
those owned by women and minorities.  Because limited data exist on this
issue, GAO surveyed a random sample of 12,000 construction firms, of
which about 98 percent were small enough to qualify for Small Business
Administration programs.  GAO focused on the (1) firms' overall rate of
obtaining bonds; (2) characteristics of the small firms that did bonded
work; (3) recent experiences of these firms in obtaining bonds; and (4)
characteristics of those firms that did not perform bonded work,
including their reasons for not doing such work.  The first volume
(GAO/RCED-95-173FS) discusses the survey results in detail.  The second
volume (GAO/RCED-95-173S) provides detailed statistics on the
experiences of small construction firms.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-95-173S
     TITLE:  Small Business: Responses to Survey on Construction Firms' 
             Access to Surety Bonds
      DATE:  06/26/95
   SUBJECT:  Surety bonds
             Small business contracts
             Small business contractors
             Small business assistance
             Construction contracts
             Construction industry
             Bid guarantees
             Budget receipts
             Surveys

             
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Cover
================================================================ COVER

Supplement to Fact Sheet for Congressional Committees

June 1995

SMALL BUSINESS - RESPONSES TO
SURVEY ON CONSTRUCTION FIRMS'
ACCESS TO SURETY BONDS

GAO/RCED-95-173S

Responses to Survey

(385370)

Abbreviations
=============================================================== ABBREV

  CPA - certified public accountant
  DOT - Department of Transportation
  GAO - General Accounting Office
  SIC - standard industrial classification
  SBA - Small Business Administration

FOREWORD
============================================================ Chapter 0

Federal law currently requires contractors to provide assurance--in
the form of a surety bond--that federal construction contracts will
be completed and that the contractors' employees and suppliers will
be paid.  Most state and local governments and some private-sector
lenders also require construction firms to be bonded. 

Surety companies issue bonds on the basis of their evaluation of a
construction firm's ability to complete a project successfully.  To
obtain a bond, a contractor must show that it has the financial
capacity and experience to perform the project.  Doing so can be
difficult for small construction companies.  The Small Business
Access to Surety Bonding Survey Act, contained in the Small Business
Credit and Business Opportunity Enhancement Act of 1992, directed us
to survey small construction companies for information on their
experiences in obtaining surety bonds between 1990 and 1993.  We sent
out a questionnaire to 12,000 firms.  Our report on this survey is
entitled Small Business:  Construction Firms' Access to Surety Bonds
(GAO/RCED-95-173FS, June 26, 1995).  This supplement provides
detailed statistics on the experiences of small construction firms. 

Section 1 of this supplement includes background information on the
methodology and limitations of our survey along with statistics on
the overall response rate and information on how to interpret the
tables in the subsequent sections.  Sections 2 to 4 include, among
other data, detailed data on the results of our survey by the average
annual revenues of the firms and the ethnicity and gender of the
firms' owners.  These sections parallel the discussion in sections 2
to 4 of our report GAO/RCED-95-173FS.  The tables in section 2 of
this supplement summarize the characteristics of construction firms
that are small enough to be eligible for the Small Business
Administration's (SBA) programs and that had obtained bonds.  The
tables in section 3 summarize the recent experiences of these firms
in obtaining bonds.  The tables in section 4 describe the
characteristics of the firms that had not obtained bonds, including
their reasons for not obtaining them.  A copy of the questionnaire
used in our survey is included in appendix I. 

Judy A.  England-Joseph
Director, Housing and Community
 Development Issues

SURVEY METHODOLOGY
============================================================ Chapter 1

We selected a simple random sample of 12,000 companies from Dun &
Bradstreet's list of 683,198 firms in the construction industry,
excluding general contractors primarily involved in residential
building construction, as of December 31, 1993.  We eliminated firms
working primarily as general contractors for and builders/developers
of single-family residences from the study because they were not as
likely as other firms to be asked to obtain bonds.  A summary of the
standard industrial classifications (SIC) of the firms included in
the survey is provided in table 1.1, and the percentage of firms in
the sample that fell into each of these classifications is shown in
table 1.2.  These classifications are based on definitions of
industrial activity used by the U.S.  Bureau of the Census. 

We sent the questionnaire to each firm in the sample.  We alerted
recipients by postcard before sending out the survey and mailed up to
two follow-up questionnaires to firms that did not respond to our
initial request.  We conducted the survey from February to July 1994,
with follow-up mailings in March and April 1994.  As table 1.3 shows,
16.9 percent of the firms in our sample were out of business or were
not doing construction work, or we lacked a current address.  Of the
remaining 9,964 firms, 50.2 percent responded to the questionnaire. 

From the list of nonrespondents as of May 13, 1994, we randomly
sampled 800 to contact by telephone.  We made up to four attempts to
reach each firm by telephone to determine whether the nonrespondents
differed from the respondents in their experiences with bonds.  The
responses to this effort are summarized in table 1.4. 

We acquired financial data on the sampled firms from Dun &
Bradstreet's Research and Regulatory File.  This information included
historical sales data for all of the sampled firms and financial
statements for 3,017 firms.  We matched the firms' financial records
with data from the survey.  The survey respondents with bonding
experience were more likely than the survey respondents with no
bonding experience and the nonrespondents to have financial
statements on file at Dun & Bradstreet.  However, as table 1.5 shows,
financial information was available for only 36.6 percent of the
survey respondents. 

   DEFINITIONS
---------------------------------------------------------- Chapter 1:1

We determined the ethnicity and gender of the owners of the firms
from the answers to the following two questions in our questionnaire: 

     "Is 51% or more of the firm owned by one or more of the
     following minority groups:  Black or African American, Hispanic,
     Asian, American Indian or Native American, or Pacific Islander?"

     "Is 51% or more of the firm owned by women?"

We determined the size of the firms by calculating their average
annual construction revenues for 3 years before the date of the
survey.  When the revenues for 3 years were not available, we used
the average revenues for 2 years or the revenues for the most recent
year.  For the firms that did not answer our question about revenues,
we used Dun & Bradstreet's historical sales data to calculate similar
averages.  We determined that these data were reliable indicators of
responses to our questions on revenues.  We then grouped the firms
into the following categories: 

  the smallest firms--those with average annual revenues less than or
     equal to $500,000;

  medium-size firms--those with average annual revenues over $500,000
     and up to $3.5 million;

  larger firms--those with average annual revenues over $3.5 million
     and up to the maximum allowed for eligibility in SBA's programs
     as a small business:  $17 million for firms in general building
     construction and heavy construction and $7 million for special
     trade contractors; and

  the largest firms--those with average annual revenues that exceeded
     SBA's size standards for small businesses.  (Data for these
     firms are not included in the tables.)

We considered that a firm had "bonding experience" if it reported
having had one or more of the experiences mentioned in the following
question:  "Has your firm ever provided a bid bond, a performance or
payment bond, or had a preapproved bonding line?" We considered that
a firm had recent experience if it had obtained a bond since 1990. 

   LIMITATIONS OF THE SURVEY DATA
---------------------------------------------------------- Chapter 1:2

Our results can be generalized to construction firms that would have
answered our survey if we had mailed our questionnaire to all
companies.  This is about half of the firms currently in business,
primarily in construction, and identified as such by Dun &
Bradstreet.  The firms that would not have responded to our
survey--and to which, therefore, the results cannot be
generalized--are smaller, on average; work more often in special
trades; and are less likely to have financial statements on record
with Dun & Bradstreet than the firms that responded.  According to
our telephone survey, these firms are also less likely to have had
bonding experience.  Our results also cannot be generalized to the
firms that have gone out of business; the newest/youngest firms,
which have not been in business long enough to be identified by Dun &
Bradstreet; or the firms working primarily as general contractors for
or builders/developers of single-family residences, which we excluded
from our review.  Finally, our results cannot be generalized to the
largest firms, that is, those with annual revenues exceeding SBA's
size standards for small businesses. 

      SAMPLING ERRORS
-------------------------------------------------------- Chapter 1:2.1

As with all sample surveys, our statistical estimates contain
sampling error--potential error that arises from not collecting data
on all firms.  We calculated the amount of sampling error for
estimates of various statistics at the 95-percent confidence level. 
This means that if we repeatedly sampled 12,000 firms from the same
Dun & Bradstreet file and performed our survey again, 95 percent of
the samples would yield results within the ranges specified by our
estimates, plus or minus the sampling errors.  In calculating
sampling errors, we did not make a correction for sampling from a
finite population.  The sampling errors for estimates of statistics
other than percentages (e.g., averages) are reported in the tables. 

We do not provide sampling errors for estimates of percentages, but
they can be computed using the formula

   s.e.  = +/- 1.96 x square root [ (p) x (1-p) / n ]

where p is the percentage of firms having a certain characteristic
and n is the number of firms with and without the characteristic. 
Both p and n are provided in the tables. 

We tested the differences between subgroups we were interested
in--such as the minority-owned firms and the firms not owned by
minorities--for statistical significance.  Statistical significance
means that the differences we observed between subgroups are larger
than would be expected from sampling error.  When this occurs, some
phenomenon other than chance is likely to have caused the difference. 
Statistical significance is absent when an observed difference
between two subgroups, plus or minus sampling error, yields a range
that includes zero.  In this instance, sampling error alone could
explain the difference.  It should be noted, however, that the
absence of a statistically significant difference does not mean that
a difference does not exist.  The sample size or number of
respondents to a question may not have been sufficient to allow us to
detect a difference.  We report the results of the tests for
statistical significance in each table. 

                               Table 1.1
                
                Standard Industrial Classification (SIC)
                Codes of Firms in Construction Industry
                           Included in Survey

----------------------------------  ----------------------------------
Major group 1500: Building cons
----------------------------------------------------------------------
1522                                General contractors--residential
                                    buildings other than single-
                                    family

1541                                General contractors--industrial
                                    buildings and warehouses

1542                                General contractors--
                                    nonresidental buildings other than
                                    industrial buildings and
                                    warehouses

Major group 1600: Heavy constru construction--contractors
----------------------------------------------------------------------
1611                                Highway and street construction,
                                    except elevated highways

1622                                Bridge, tunnel, and elevated
                                    highway construction

1623                                Water, sewer, pipeline, and
                                    communications and power line
                                    construction

1629                                Heavy construction not elsewhere
                                    classified

Major group 1700: Construction-contractors
----------------------------------------------------------------------
1711                                Plumbing, heating, and air-
                                    conditioning

1721                                Painting and paper hanging

1731                                Electrical work

1741                                Masonry, stone setting, and other
                                    stone work

1742                                Plastering, drywall, and
                                    acoustical and insulation work

1743                                Terrazzo, tile, marble, and mosaic
                                    work

1751                                Carpentry work

1752                                Floor laying and other floor work
                                    not elsewhere classified

1761                                Roofing, siding, and sheet metal
                                    work

1771                                Concrete work

1781                                Water well drilling

1791                                Structural steel erection

1793                                Glass and glazing work

1794                                Excavation work

1795                                Wrecking and demolition work

1796                                Installation or erection of
                                    building equipment not elsewhere
                                    classified

1799                                Special trade contractors not
                                    elsewhere classified
----------------------------------------------------------------------

                               Table 1.2
                
                 Percentage of Firms in Sample Meeting
                    SBA's Size Standards in Selected
                  Standard Industrial Classifications

                                                      Percent of firms
Standard industrial classification                          (n=12,000)
--------------------------------------------------  ------------------
Building construction                                             11.5
Heavy construction                                                 7.4
Special trade construction                                        81.1
----------------------------------------------------------------------

                               Table 1.3
                
                 Summary of Responses to Questionnaires

Response category                                    Percent    Number
--------------------------------------------------  --------  --------
Respondents\
----------------------------------------------------------------------
Completed questionnaire;                              18.5 2      ,225
 obtained a bond or had a bonding line
Completed questionnaire;                                23.0     2,771
 had no bonding experience
Completed some questions;                                0.1        12
 did not describe bonding experience
Ineligible (no construction                             10.9     1,310
 revenues since 1990 or
 not in construction)
======================================================================
Subtotal                                                52.5   6,318\a

Nonrespondents
----------------------------------------------------------------------
Out of business, no new forwarding address, or           6.0       726
 deceased
Refused                                                  0.4        53
No information on reason for                            41.0     4,928
 nonresponse
======================================================================
Subtotal                                                47.5     5,707
----------------------------------------------------------------------
\a Includes 25 firms that responded anonymously. 

                               Table 1.4
                
                   Summary of Responses to Follow-Up
                          Telephone Interviews

Response category                                    Percent    Number
--------------------------------------------------  --------  --------
Respondents
----------------------------------------------------------------------
Completed interview;                                    14.0       112
 provided a bond or had a
 bonding line
No bonding experience                                   22.6       181
======================================================================
Subtotal                                                36.6       293

Nonrespondents
----------------------------------------------------------------------
Out of business;                                        29.5       236
 disconnected telephone
Refused                                                  3.0        24
No information on reason                                30.9       247
 for nonresponse
======================================================================
Subtotal                                                63.4       507
----------------------------------------------------------------------

                                    Table 1.5
                     
                      Characteristics of Survey Respondents
                                and Nonrespondents

                                                                  Ineligible/out
Characteristic            Respondents \a   Nonrespondents \b         of business
--------------------  ------------------  ------------------  ------------------
Had financial                      36.6%               18.6%               12.6%
 statement on file             (n=5,008)           (n=4,981)           (n=2,036)
 with Dun &
 Bradstreet\c
Average revenues\c            $1,818,178            $799,716            $297,129
                            (+/-347,982)        (+/-112,883)         (+/-43,448)
                               (n=5,001)           (n=4,972)           (n=2,026)
Distribution of                (n=5,003)           (n=4,979)           (n=2,035)
 revenues\d
Up to $500,000                     59.9%               74.9%               87.0%
$500,001 to                        32.1%               21.6%               12.4%
 $3.5 million
Over $3.5 million                   5.4%                2.6%                0.4%
 to
 SBA's maximum
Over SBA's maximum                  2.6%                1.0%                0.1%
Distribution of                (n=4,983)          (n= 4,981)           (n=2,036)
 standard industrial
 classifications\d
Building                           14.3%                9.9%                9.7%
 construction
Heavy construction                  9.1%                6.6%                5.8%
Special trade                      76.6%               83.5%               84.4%
 construction
--------------------------------------------------------------------------------
\a Includes firms that had had bonding experience, firms that had not
had bonding experience, and firms that responded but did not indicate
their bonding experience. 

\b Includes refusals. 

\c Differences among all three groups are statistically significant. 

\d Differences in distribution by response category are statistically
significant. 

                               Table 1.6
                
                   Characteristics of Respondents to
                  Telephone and Mail Surveys That Met
                  SBA's Definition of Small Businesses

Characteristic                              Telephone\            Mail
--------------------------------------  --------------  --------------
Bonding experience                             (n=289)       (n=4,863)
Had bonding experience                           37.4%           43.2%
Had no bonding experience                        62.6%           56.8%
Gender of owner                                (n=252)       (n=4,634)
Owned by women                                    8.7%            9.1%
Not owned by women                               91.3%           90.9%
Ethnicity of owner                             (n=252)       (n=4,524)
Owned by minority                                 7.1%            6.9%
Not owned by minority                            92.9%           93.1%
----------------------------------------------------------------------
\a Includes firms with bonding experience and those with no bonding
experience. 

                               Table 1.7
                
                    Size of Subgroups That Returned
                             Questionnaires

                                            Obtained a
                                         bond or had a      No bonding
                                          bonding line      experience
Subgroup                                     (n=2,225)       (n=2,771)
--------------------------------------  --------------  --------------
Respondents, by size of firm
----------------------------------------------------------------------
Smallest (revenues $500,000 and under)             839           2,149
Medium-size (revenues $500,001-$3.5              1,007             598
 million)
Larger (revenues over $3.5 million to              254              16
 SBA maximum size)
SBA small\a subtotal                             2,100           2,763
Largest\b                                          123               5
Size not reported                                    2               3

Respondents, by ethnicity of owner and size of firm
----------------------------------------------------------------------
Owned by minority
Smallest                                            76             121
Medium-size                                         55              40
Larger                                              17               1
SBA small subtotal                                 148             162
Largest                                              5               0
Size not reported                                    0               1
======================================================================
Total                                              153             163
Not owned by minority
Smallest                                           733           1,791
Medium-size                                        930             512
Larger                                             236              12
SBA small subtotal                               1,899           2,315
Largest                                            118               5
Size not reported                                    2               1
======================================================================
Total                                            2,019           2,321
Ethnicity not reported                              53             287

Respondents, by gender of owner and size of firm
----------------------------------------------------------------------
Owned by women
Smallest                                           100             148
Medium-size                                        108              47
Larger                                              20               0
SBA small subtotal                                 228             195
Largest                                              5               0
Size not reported                                    1               0
Total                                              234             195
Not owned by women
Smallest                                           709           1,854
Medium-size                                        878             522
Larger                                             233              15
SBA small subtotal                               1,820           2,391
Largest                                            118               5
Size not reported                                    1               3
======================================================================
Total                                            1,939           2,399
Gender not reported                                 52             177
----------------------------------------------------------------------
\a "SBA small" includes the smallest, medium-size, and larger firms
shown above; that is, those firms eligible for SBA's programs for
small businesses. 

\b Largest firms are those whose revenues are higher than the maximum
allowed for eligibility for SBA's programs. 

CHARACTERISTICS OF FIRMS THAT HAD
OBTAINED SURETY BONDS
============================================================ Chapter 2

Forty-three percent of the firms that responded to our survey had at
one time obtained surety bonds or had an approved bonding line.  We
estimate that in the universe of firms in our study, the percentage
of firms with this experience is lower than 43 percent but no lower
than 23 percent. 

The tables in this section provide estimates about at most the
119,560 (+/- 4,645) firms represented by respondents to our survey
that had obtained bonds.  The results in particular tables can be
generalized only to the firms that said they had obtained a bond or
had a bonding line and that provided the information covered in the
table.  The approximate number of firms can be estimated by
multiplying the number of firms responding to the question (n) by the
expansion factor, 683,198/12,000.  We used the results from the
telephone survey to increase the accuracy of our estimate of the
number of small firms that had obtained bonds.  In the tables, we
have provided the statistics, the sampling errors for estimates other
than percentages, and the sample sizes to enable the reader to
calculate the sampling errors for our estimates of percentages using
the formula provided in section 1.  In some tables that present
distributions, the columns do not add to 100 percent because of
rounding. 

                               Table 2.1
                
                   Characteristics of Firms That Had
                 Obtained a Bond or Had a Bonding Line

                                                Number
                                             providing
Characteristic                             information       Statistic
--------------------------------------  --------------  --------------
Gender                                       (n=2,048)
Owned by women                                                   11.1%
Not owned by women                                               88.9%
Ethnicity                                    (n=2,047)
Owned by minority                                                 7.2%
Not owned by minority                                            92.8%
Size                                         (n=2,100)
Average revenues                                            $1,569,840
                                                           (+/-98,680)
Up to $500,000                                                   40.0%
$500,001-$3.5 million                                            48.0%
Over $3.5 million to SBA's maximum                               12.1%
Years in construction                        (n=2,093)   20.4 (+/-0.7)
                                                                 years
SIC                                          (n=2,087)
Building construction                                            20.7%
Heavy construction                                               14.3%
Special trade construction                                       65.0%
----------------------------------------------------------------------

                               Table 2.2a
                
                 Annual Revenues of Firms, by Ethnicity
                                of Owner

                                              Owned by    Not owned by
                                              minority        minority
Revenues                                       (n=148)       (n=1,899)
--------------------------------------  --------------  --------------
Average\a                                   $1,363,715      $1,608,436
                                          (+/-301,738)    (+/-105,785)
Distribution\b
Up to $500,000                                   51.4%           38.6%
$500,001-$3.5 million                            37.2%           49.0%
Over $3.5 million to SBA's maximum               11.5%           12.4%
----------------------------------------------------------------------
\a Difference by ethnicity is not statistically significant. 

\b Differences in distribution by ethnicity are statistically
significant. 

                               Table 2.2b
                
                 Annual Revenues of Firms, by Gender of
                                 Owner

                                                          Not owned by
                                    Owned by women               women
Revenues                                   (n=228)           (n=1,820)
------------------------------  ------------------  ------------------
Average                                 $1,398,811          $1,616,428
                                      (+/-329,441)        (+/-105,637)
Distribution
Up to $500,000                               43.9%               39.0%
$500,001-$3.5 million                        47.4%               48.2%
Over $3.5 million to SBA's                    8.8%               12.8%
 maximum
----------------------------------------------------------------------
\a Differences in averages and distributions by gender are not
statistically significant. 

                                    Table 2.3a
                     
                      Firms' Average Years of Experience in
                          Construction, by Size of Firm

                                                         Over $3.5
                                           $500,001-    million to
                                   Up to        $3.5         SBA's       All SBA
                                $500,000     million       maximum   small firms
Experience                       (n=833)   (n=1,006)       (n=254)     (n=2,093)
--------------------------  ------------  ----------  ------------  ------------
Average number of years in         18.99       20.07         26.16          20.4
 construction                  (+/-0.89)   (+/-0.94)     (+/-2.49)      (+/-0.7)
--------------------------------------------------------------------------------
\a Differences between the smallest firms and the firms with average
revenues over $3.5 million and between the medium-size firms and the
firms with average revenues over $3.5 million are statistically
significant. 

                               Table 2.3b
                
                 Firms' Average Years of Experience in
                  Construction, by Ethnicity of Owner

                                        Owned by          Not owned by
Experience                      minority (n=148)    minority (n=1,894)
------------------------------  ----------------  --------------------
Average number of years in                 14.69                 20.83
 construction                          (+/-1.73)             (+/-0.70)
----------------------------------------------------------------------
\a Difference by ethnicity is statistically significant. 

                               Table 2.3c
                
                 Firms' Average Years of Experience in
                    Construction, by Gender of Owner

                                                          Not owned by
                                      Owned by women             women
Experience                                   (n=227)         (n=1,816)
----------------------------------  ----------------  ----------------
Average number of years in                     18.51             20.68
 construction                              (+/-1.76)         (+/-0.71)
----------------------------------------------------------------------
\a Difference by gender is statistically significant. 

                                    Table 2.4a
                     
                     Years of Construction Experience of the
                     Firm's Most Experienced Person, by Size
                                     of Firm

                                                           Over $3.5
                                             $500,001-    million to     All SBA
                                   Up to          $3.5         SBA's       small
                                $500,000       million       maximum       firms
Years of experience              (n=811)       (n=990)       (n=253)   (n=2,054)
----------------------------  ----------  ------------  ------------  ----------
1-3                                 1.2%            \b          0.0%        0.6%
4-6                                 1.4%          0.9%            \b        1.0%
7-9                                 3.1%          1.8%            \b        2.2%
10 or more                         94.3%         97.0%         98.4%       96.1%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 2.4b
                
                Years of Construction Experience of the
                   Firm's Most Experienced Person, by
                           Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Years of experience                      (n=145)             (n=1,887)
----------------------------  ------------------  --------------------
1-3                                           \b                  0.6%
4-6                                           \b                  1.0%
7-9                                         3.4%                  2.1%
10 or more                                 93.8%                 96.3%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 2.4c
                
                Years of Construction Experience of the
                   Firm's Most Experienced Person, by
                            Gender of Owner

                                  Owned by women    Not owned by women
Years of experience                      (n=226)             (n=1,806)
----------------------------  ------------------  --------------------
1-3                                           \b                  0.7%
4-6                                           \b                  1.1%
7-9                                         2.2%                  2.2%
10 or more                                 96.9%                 96.0%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                    Table 2.5a
                     
                     Percentage of Firms in Selected Standard
                      Industrial Classifications, by Size of
                                       Firm

                                         $500,001-         Over $3.5     All SBA
                               Up to          $3.5  million to SBA's       small
Standard industrial         $500,000       million           maximum       firms
classification               (n=836)     (n=1,001)           (n=250)   (n=2,087)
------------------------  ----------  ------------  ----------------  ----------
Building construction          14.4%         22.5%             34.8%       20.7%
Heavy construction              8.5%         15.5%             29.2%       14.3%
 contractors
Special trade                  77.2%         62.0%             36.0%       65.0%
 contractors
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                               Table 2.5b
                
                Percentage of Firms in Selected Standard
                Industrial Classifications, by Ethnicity
                                of Owner

                                                          Not owned by
Standard industrial            Owned by minority              minority
classification                           (n=146)             (n=1,888)
----------------------------  ------------------  --------------------
Building construction                      20.5%                 20.7%
Heavy construction                         21.9%                 14.0%
 contractors
Special trade contractors                  57.5%                 65.3%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

                               Table 2.5c
                
                Percentage of Firms in Selected Standard
                Industrial Classifications, by Gender of
                                 Owner

Standard industrial               Owned by women    Not owned by women
classification                           (n=227)             (n=1,809)
----------------------------  ------------------  --------------------
Building construction                      19.4%                 20.8%
Heavy construction                         16.7%                 14.3%
 contractors
Special trade contractors                  63.9%                 64.9%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                    Table 2.6a
                     
                       Distribution of Firms' Work in 1993
                        Performed Directly for Owners and
                     Through Subcontracting, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5  million to SBA's       small
                              $500,000     million           maximum       firms
Type of work                   (n=812)     (n=998)           (n=251)  (n= 2,061)
------------------------  ------------  ----------  ----------------  ----------
More direct work for             39.8%       43.6%             46.6%       42.5%
 owner
More subcontracting              52.7%       50.5%             49.8%       51.3%
Equal amounts of direct           7.5%        5.9%              3.6%        6.3%
 work and subcontracting
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are not statistically
significant. 

                               Table 2.6b
                
                  Distribution of Firms' Work in 1993
                   Performed Directly for Owners and
                Through Subcontracting, by Ethnicity of
                                 Owner

                                                          Not owned by
                               Owned by minority              minority
Type of work                             (n=147)             (n=1,864)
----------------------------  ------------------  --------------------
More direct work for owner                 38.8%                 42.7%
More subcontracting                        56.5%                 50.9%
Equal amounts of direct work                4.8%                  6.4%
 and subcontracting
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                               Table 2.6c
                
                  Distribution of Firms' Work in 1993
                   Performed Directly for Owners and
                  Through Subcontracting, by Gender of
                                 Owner

                                  Owned by women    Not owned by women
Type of work                             (n=226)             (n=1,785)
----------------------------  ------------------  --------------------
More direct work for owner                 46.5%                 42.0%
More subcontracting                        47.3%                 51.7%
Equal amounts of direct work                6.2%                  6.4%
 and subcontracting
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                    Table 2.7a
                     
                       Distribution of When Firms Obtained
                        Their First Bonds, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
When first bond or             Up to          $3.5  million to SBA's       small
bonding line was            $500,000       million           maximum       firms
obtained                     (n=816)       (n=993)           (n=253)   (n=2,062)
------------------------  ----------  ------------  ----------------  ----------
Before 1985                    46.7%         49.4%             71.5%       51.1%
1985-1989                      25.6%         25.2%             12.6%       23.8%
1990-1992                      19.5%         19.5%             12.6%       18.7%
During 1993                     8.2%          5.8%              3.2%        6.5%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                                    Table 2.7b
                     
                       Distribution of When Firms Obtained
                     Their First Bonds, by Ethnicity of Owner

                                                                    Not owned by
When first bond or bonding line was      Owned by minority              minority
obtained                                           (n=144)             (n=1,872)
--------------------------------------  ------------------  --------------------
Before 1985                                          29.9%                 53.1%
1985-1989                                            28.5%                 23.5%
1990-1992                                            29.9%                 17.5%
During 1993                                          11.8%                  6.0%
--------------------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

                               Table 2.7c
                
                  Distribution of When Firms Obtained
                 Their First Bonds, by Gender of Owner

When first bond or bonding        Owned by women    Not owned by women
line was obtained                        (n=223)             (n=1,794)
----------------------------  ------------------  --------------------
Before 1985\b                              44.8%                 52.5%
1985-1989                                  27.8%                 23.1%
1990-1992                                  19.3%                 18.2%
During 1993                                 8.1%                  6.2%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

\b Difference in percentages by gender is statistically significant. 

                                    Table 2.8a
                     
                     Percentage of Firms Reporting Net Profit
                      in 1990-93 for Years in Which They Did
                        Construction Work, by Size of Firm

Profit                                               Over $3.5
status                         $500,001-$3.5  million to SBA's     All SBA small
by year     Up to $500,000           million           maximum             firms
--------  ----------------  ----------------  ----------------  ----------------
1990               (n=774)           (n=961)           (n=246)         (n=1,981)
Profit               57.4%             65.8%             81.7%             64.5%
No                   33.1%             27.5%             16.7%             28.3%
 profit
No                    9.6%              6.8%              1.6%              7.2%
 answer
1991               (n=791)           (n=983)           (n=251)         (n=2,025)
Profit               57.4%             63.1%             78.1%             62.7%
No                   33.2%             30.1%             20.3%             30.1%
 profit
No                    9.4%              6.8%              1.6%              7.2%
 answer
1992               (n=801)           (n=986)           (n=250)         (n=2,037)
Profit               56.1%             63.4%             75.6%             62.0%
No                   34.6%             30.0%             22.8%             30.9%
 profit
No                    9.4%              6.6%              1.6%              7.1%
 answer
1993               (n=796)           (n=990)           (n=251)         (n=2,037)
Profit               57.4%             64.4%             73.3%             62.8%
No                   33.7%             29.1%             25.1%             30.4%
 profit
No                    8.9%              6.5%              1.6%              6.8%
 answer
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant for all years. 

                               Table 2.8b
                
                Percentage of Firms Reporting Net Profit
                 in 1990-93 for Years in Which They Did
                Construction Work, by Ethnicity of Owner

                                                          Not owned by
Profit status by year          Owned by minority              minority
----------------------------  ------------------  --------------------
1990\a                                   (n=131)             (n=1,801)
Profit                                     54.2%                 66.2%
No profit                                  36.6%                 28.2%
No answer                                   9.2%                  5.7%
1991\a                                   (n=138)             (n=1,839)
Profit                                     55.1%                 64.3%
No profit                                  35.5%                 30.2%
No answer                                   9.4%                  5.5%
1992\b                                   (n=141)             (n=1,847)
Profit                                     62.4%                 63.0%
No profit                                  28.4%                 31.6%
No answer                                   9.2%                  5.4%
1993\a                                   (n=144)             (n=1,843)
Profit                                     50.7%                 64.8%
No profit                                  40.3%                 30.1%
No answer                                   9.0%                  5.2%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

\b Differences in distribution by ethnicity are not statistically
significant. 

                               Table 2.8c
                
                Percentage of Firms Reporting Net Profit
                 in 1990-93 for Years in Which They Did
                 Construction Work, by Gender of Owner

Profit status by year             Owned by women    Not owned by women
----------------------------  ------------------  --------------------
1990                                     (n=209)             (n=1,728)
Profit                                     62.7%                 65.7%
No profit                                  31.1%                 28.5%
No answer                                   6.2%                  5.8%
1991                                     (n=215)             (n=1,767)
Profit                                     57.7%                 64.3%
No profit                                  35.8%                 29.9%
No answer                                   6.5%                  5.8%
1992                                     (n=218)             (n=1,774)
Profit                                     56.4%                 63.6%
No profit                                  37.2%                 30.8%
No answer                                   6.4%                  5.6%
1993                                     (n=225)             (n=1,765)
Profit                                     57.3%                 64.6%
No profit                                  37.3%                 29.9%
No answer                                   5.3%                  5.5%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant for any year. 

FIRMS' RECENT EXPERIENCE IN
OBTAINING BONDS
============================================================ Chapter 3

Of the firms that had obtained a bond or had a bonding line (i.e.,
were preapproved by a surety company to obtain bonds), 72 percent had
obtained bonds in 1990 or later.  The tables in this section provide
estimates about at most the 84,491 (+/- 4,024) firms represented by
the respondents to our survey with recent bonding experience.  The
results in particular tables can be generalized only to the firms
that said they had obtained a bond since 1990 and that provided the
information discussed in the table.  The approximate number of firms
can be estimated by multiplying the number of firms responding to the
question (n) by the expansion factor, 683,198/12,000.  In the tables,
we have provided the statistics, the sampling errors for our
estimates other than percentages, and the sample sizes to enable the
reader to calculate the sampling errors for our estimates of
percentages using the formula provided in section 1.  In some tables
that present distributions, the columns do not add to 100 percent
because of rounding. 

                                    Table 3.1a
                     
                       Percentage of Bonded Firms That Had
                      Obtained a Bond Since 1990, by Size of
                                       Firm

                                         $500,001-         Over $3.5     All SBA
                               Up to          $3.5    million to SBA       small
                            $500,000       million           maximum       firms
                             (n=816)       (n=992)           (n=253)   (n=2,061)
------------------------  ----------  ------------  ----------------  ----------
Percentage that had            54.8%         79.8%             96.8%       72.0%
 obtained a bid,
 performance, or payment
 bond after January 1,
 1990
--------------------------------------------------------------------------------
\a Differences by size of firm are statistically significant. 

                               Table 3.1b
                
                  Percentage of Bonded Firms That Had
                Obtained a Bond Since 1990, by Ethnicity
                                of Owner

                                                          Not owned by
                               Owned by minority              minority
                                         (n=144)             (n=1,872)
----------------------------  ------------------  --------------------
Percentage that had obtained               75.7%                 72.3%
 a bid, performance, or
 payment bond after January
 1, 1990
----------------------------------------------------------------------
\a Difference by ethnicity is not statistically significant. 

                               Table 3.1c
                
                  Percentage of Bonded Firms That Had
                Obtained a Bond Since 1990, by Gender of
                                 Owner

                                  Owned by women    Not owned by women
                                         (n=226)             (n=1,791)
----------------------------  ------------------  --------------------
Percentage that had obtained               78.3%                 71.9%
 a bid, performance, or
 payment bond after January
 1, 1990
----------------------------------------------------------------------
\a Difference by gender is statistically significant. 

                               Table 3.2
                
                   Characteristics of Firms That Had
                       Obtained a Bond Since 1990

                                                    Number
                                                 providing
Characteristic                                 information   Statistic
------------------------------------------  --------------  ----------
Gender                                           (n=1,463)
Owned by women                                                   12.0%
Not owned by women                                               88.0%
Ethnicity                                        (n=1,462)
Owned by minority                                                 7.5%
Not owned by minority                                            92.5%
Size                                             (n=1,483)
Average revenues
                                                            $1,943,249
                                                                  (+/-
                                                              126,958)
Up to $500,000                                                   30.1%
$500,001-$3.5 million                                            53.4%
Over $3.5 million to SBA maximum                                 16.5%
Years in construction                            (n=1,481)        19.8
                                                             (+/-0.80)
SIC                                              (n=1,474)
Building construction                                            22.2%
Heavy construction                                               16.1%
Special trade construction                                       61.7%
----------------------------------------------------------------------

                                    Table 3.3a
                     
                      Percentage of Firms That Had Obtained
                      Bonds Through Various Sources, by Size
                                     of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Source of bonds                (n=443)     (n=786)           (n=244)   (n=1,473)
------------------------  ------------  ----------  ----------------  ----------
Agent who was a                  56.2%       75.7%             84.8%       71.4%
 specialist in surety
 bonds
Agent who was not a              19.2%        9.9%              9.0%       12.6%
 specialist
Surety company directly           5.2%        2.5%              1.6%        3.2%
Source unknown                   19.4%       11.8%              4.5%       12.9%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                               Table 3.3b
                
                 Percentage of Firms That Had Obtained
                   Bonds Through Various Sources, by
                           Ethnicity of Owner

                                                                   Not
                                                                 owned
                                                                    by
                                                                minori
                                                                    ty
                                             Owned by minority  (n=1,3
Source of bonds                                        (n=108)     45)
------------------------------------------  ------------------  ------
Agent who was a specialist in surety bonds               73.1%   71.4%
Agent who was not a specialist                            9.3%   12.7%
Surety company directly                                   6.5%    2.9%
Source unknown                                           11.1%   13.0%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                               Table 3.3c
                
                 Percentage of Firms That Had Obtained
                Bonds Through Various Sources, by Gender
                                of Owner

                                  Owned by women    Not owned by women
Source of bonds                          (n=175)             (n=1,278)
----------------------------  ------------------  --------------------
Agent who was a specialist                 68.0%                 72.1%
 in surety bonds
Agent who was not a                        10.9%                 12.6%
 specialist
Surety company directly                     4.0%                  3.1%
Source unknown                             17.1%                 12.3%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                    Table 3.4a
                     
                       Percentage of Firms Obtaining Their
                      First Bond Between 1990 and 1993 That
                      Had Requirements Explained in Advance
                     the First Time They Asked for a Bond, by
                                   Size of Firm

Extent to which                          $500,001-         Over $3.5     All SBA
information was given by         Up to        $3.5    million to SBA       small
agents, brokers, or           $500,000     million           maximum       firms
surety companies               (n=171)     (n=213)            (n=37)     (n=421)
------------------------  ------------  ----------  ----------------  ----------
Little or no extent              17.0%       11.3%                \b       12.8%
Some extent                      15.2%       12.7%             16.2%       14.0%
Moderate extent                  29.2%       28.6%             21.6%       28.3%
Great extent                     25.7%       32.4%             27.0%       29.2%
Very great extent                12.9%       15.0%             32.4%       15.7%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 3.4b
                
                  Percentage of Firms Obtaining Their
                 First Bond Between 1990 and 1993 That
                 Had Requirements Explained in Advance
                the First Time They Asked for a Bond, by
                           Ethnicity of Owner

Extent to which information                               Not owned by
was given by agents,           Owned by minority              minority
brokers, or surety companies              (n=47)               (n=363)
----------------------------  ------------------  --------------------
Little or no extent                        17.0%                 12.4%
Some extent                                14.9%                 13.8%
Moderate extent                            36.2%                 27.0%
Great extent                               21.3%                 30.3%
Very great extent                          10.6%                 16.5%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                               Table 3.4c
                
                  Percentage of Firms Obtaining Their
                 First Bond Between 1990 and 1993 That
                 Had Requirements Explained in Advance
                the First Time They Asked for a Bond, by
                            Gender of Owner

Extent to which information
was given by agents,              Owned by women    Not owned by women
brokers, or surety companies              (n=50)               (n=361)
----------------------------  ------------------  --------------------
Little or no extent                        10.0%                 13.0%
Some extent                                10.0%                 14.1%
Moderate extent                            38.0%                 26.6%
Great extent                               28.0%                 29.9%
Very great extent                          14.0%                 16.3%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                    Table 3.5a
                     
                        Percentage of Firms That Had Used
                     Government Bonding Assistance Programs,
                                 by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Source of bonds                (n=444)     (n=785)           (n=244)  (n= 1,473)
------------------------  ------------  ----------  ----------------  ----------
Percentage that had used         14.6%        9.0%              3.7%        9.8%
 federal, state, or
 local assistance
 programs to get a bond
 in 1990-93
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                               Table 3.5b
                
                   Percentage of Firms That Had Used
                Government Bonding Assistance Programs,
                         by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
                                         (n=108)             (n=1,346)
----------------------------  ------------------  --------------------
Percentage that had used                   14.8%                  9.4%
 federal, state, or local
 assistance programs to get
 a bond in 1990-93
----------------------------------------------------------------------
\a Difference by ethnicity is not statistically significant. 

                               Table 3.5c
                
                   Percentage of Firms That Had Used
                Government Bonding Assistance Programs,
                           by Gender of Owner

                                  Owned by women    Not owned by women
                                         (n=175)             (n=1,278)
----------------------------  ------------------  --------------------
Percentage that had used                   11.4%                  9.4%
 federal, state, or local
 assistance programs to get
 a bond in 1990-93
----------------------------------------------------------------------
\a Difference by gender is not statistically significant. 

                                    Table 3.6
                     
                        Percentage of Firms That Had Used
                     Government Bonding Assistance Programs,
                     by When the Firm Obtained Its First Bond
                                 or Bonding Line

                                                 1985-   1990-
                                        Before      89      92    1993     1985-
                                          1985  (n=324  (n=330  (n=113      1993
                                       (n=699)       )       )       )   (n=767)
----------------------------------  ----------  ------  ------  ------  --------
Percentage that had used federal,           7%   13.9%   11.5%   11.5%     12.5%
 state, or local assistance
 programs to get a bond in 1990-
 93
--------------------------------------------------------------------------------
\a Difference between the firms that had obtained a bond before 1985
and the other firms is statistically significant.  Other differences
among firms are not statistically significant. 

                               Table 3.7
                
                  Distribution of When Firms Obtained
                 Their First Bonds, by Whether the Firm
                Had or Had Not Used Government Programs
                            to Obtain a Bond

                                          Had used        Had not used
                                        government          government
When obtained first bond or               programs            programs
bonding a line                             (n=145)           (n=1,321)
------------------------------  ------------------  ------------------
Before 1985                                  33.8%               49.2%
From 1985-89                                 31.0%               21.1%
From 1990-92                                 26.2%               22.1%
During 1993                                   9.0%                7.6%
----------------------------------------------------------------------
\a Differences in distribution by whether the firm had or had not
used government programs to obtain a bond are statistically
significant. 

                                    Table 3.8
                     
                      Differences Between Firms That Had and
                       Had Not Used Government Programs to
                                   Obtain Bonds

                                                    Had used        Had not used
                                                  government          government
Characteristic                                      programs            programs
----------------------------------------  ------------------  ------------------
Average annual revenues                           $1,056,183          $2,041,737
                                                (+/-211,380)        (+/-138,304)
                                                     (n=145)           (n=1,327)
Average size of largest bond provided in            $385,635          $1,214,414
 1993                                           (+/-109,736)        (+/-349,768)
                                                     (n=110)             (n=927)
Average fee paid for performance and                   3.10%               2.38%
 payment bonds in 1993 (expressed as a             (+/-0.56)           (+/-0.13)
 percentage of the first $100,000 of the             (n=113)           (n=1,020)
 contract amount)
Percent that paid for bid bonds in 1993                68.9%               50.0%
                                                     (n=103)             (n=846)
Percent that lost an opportunity to bid                35.6%               18.0%
 in 1993 because bond request was not                (n=132)           (n=1,196)
 processed in time
Percent that were denied a bond at least               33.6%               20.8%
 once                                                (n=143)           (n=1,304)
Percent that were required to hire a                   10.7%                3.6%
 financial management firm, consulting               (n=140)           (n=1,271)
 firm, or CPA selected by the surety
 company
Percent that were required to enter into                5.7%                2.4%
 an arrangement that gives the surety                (n=140)           (n=1,271)
 company the right to manage the job
 being bonded, even when the firm is not
 in default
Percent that obtained their first bond                 66.2%               50.8%
 after 1985                                          (n=145)           (n=1,321)
--------------------------------------------------------------------------------
\a Differences between the firms that had and had not used government
programs are statistically significant. 

Note:  The following characteristics were not significantly different
for firms that had and had not used government programs:  standard
industrial classification; years of experience in construction;
percentage of revenues in 1993 from bonded work; whether the firm had
a preapproved bonding line and, if so, when it was first approved;
whether the firm was required to provide collateral, establish an
escrow account controlled by the surety company, or purchase
insurance from the bonding agent in order to obtain a bond; and
whether the firm perceived a tightening in the requirements to get a
bond over the last 5 years. 

                                    Table 3.9a
                     
                     Time Taken to Get First Request for Bond
                      Approved for Firms That Received Their
                     First Bond in 1990 or Later, by Size of
                                       Firm

                                       $500,001-                         All SBA
                               Up to        $3.5   Over $3.5 million       small
                            $500,000     million      to SBA maximum       firms
Number of days               (n=143)     (n=161)              (n=27)     (n=331)
----------------------  ------------  ----------  ------------------  ----------
Up to 10                       55.2%       49.1%               55.6%       52.3%
11-30                          28.0%       29.2%               25.9%       28.4%
More than 30                   16.8%       21.7%               18.5%       19.3%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are not statistically
significant. 

                               Table 3.9b
                
                Time Taken to Get First Request for Bond
                 Approved for Firms That Received Their
                    First Bond in 1990 or Later, by
                           Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Number of days                            (n=39)               (n=283)
----------------------------  ------------------  --------------------
Up to 10                                   46.2%                 53.7%
11-30                                      28.2%                 27.9%
More than 30                               25.6%                 18.4%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                               Table 3.9c
                
                Time Taken to Get First Request for Bond
                 Approved for Firms That Received Their
                 First Bond in 1990 or Later, by Gender
                                of Owner

                                  Owned by women    Not owned by women
Number of days                            (n=38)               (n=286)
----------------------------  ------------------  --------------------
Up to 10                                   44.7%                 53.1%
11-30                                      34.2%                 28.0%
More than 30                               21.1%                 18.9%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                   Table 3.10a
                     
                        Frequency With Which Firms Lost an
                     Opportunity to Bid in 1993 Because Bond
                      Request Was Not Processed in Time, by
                                   Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Frequency                     (n= 370)    (n= 733)          (n= 236)  (n= 1,339)
------------------------  ------------  ----------  ----------------  ----------
Never                            74.6%       80.5%             87.7%       80.1%
1-5 times                        21.9%       16.2%              9.7%       16.7%
6-12 times                        2.4%        2.0%              1.7%        2.1%
More than 12 times                1.1%        1.2%                \b        1.1%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.10b
                
                   Frequency With Which Firms Lost an
                Opportunity to Bid in 1993 Because Bond
                 Request Was Not Processed in Time, by
                           Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Frequency                                 (n=98)             (n=1,225)
----------------------------  ------------------  --------------------
Never                                      56.1%                 82.2%
1-5 times                                  36.7%                 14.9%
6-12 times                                  5.1%                  1.9%
More than 12 times                            \b                  1.0%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.10c
                
                   Frequency With Which Firms Lost an
                Opportunity to Bid in 1993 Because Bond
                 Request Was Not Processed in Time, by
                            Gender of Owner

                                                                   Not
                                                                 owned
                                                                    by
                                                                 women
                                                Owned by women  (n=1,1
Frequency                                              (n=164)     60)
------------------------------------------  ------------------  ------
Never                                                    77.4%   80.5%
1-5 times                                                17.7%   16.6%
6-12 times                                                  \b    2.1%
More than 12 times                                        3.0%    0.9%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 3.11
                
                Time Taken to Approve First Request for
                  Bonds in 1993 for Firms That Lost an
                 Opportunity to Bid on a Job Because of
                  Delays in Processing a Bond Request

                               Lost at least one         Never lost an
                              opportunity to bid    opportunity to bid
                                         in 1993               in 1993
Number of days                            (n=23)                (n=63)
----------------------------  ------------------  --------------------
Up to 10                                   26.1%                 66.7%
11-30                                      52.2%                 23.8%
More than 30                               21.7%                  9.5%
----------------------------------------------------------------------
\a Differences in distribution are statistically significant. 

                                   Table 3.12a
                     
                     Percentage of Firms Required to Provide
                      Various Financial Information in Order
                          to Get a Bond, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Requirement                    (n=407)     (n=762)           (n=242)   (n=1,411)
------------------------  ------------  ----------  ----------------  ----------
Report of work on hand/          72.2%       91.2%             95.9%       86.5%
 job status
Personal financial               79.4%       89.5%             89.7%       86.6%
 statements
Compilation of financial         72.5%       84.8%             84.7%       81.2%
 statements
CPA review of financial          67.6%       82.4%             80.6%       77.8%
 statements
Letters of credit/               59.5%       68.8%             65.3%       65.5%
 bankers' acceptances
Corporate tax returns            51.8%       69.3%               64%       63.4%
Personal tax returns             58.2%       58.4%             49.2%       56.8%
CPA audit of financial           44.5%       44.4%             65.7%       48.1%
 statements
--------------------------------------------------------------------------------
\a Differences by size of firm are statistically significant. 

                              Table 3.12b
                
                Percentage of Firms Required to Provide
                 Various Financial Information in Order
                  to Get a Bond, by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Requirement                              (n=104)             (n=1,296)
----------------------------  ------------------  --------------------
Report of work on hand/job                 84.6%                 86.7%
 status
Personal financial                         87.5%                 86.6%
 statements
Compilation of financial                   81.7%                 81.2%
 statements
CPA review of financial                    84.6%                 77.4%
 statements
Letters of credit/bankers'                 63.5%                 65.7%
 acceptances
Corporate tax returns                      71.2%                   63%
Personal tax returns\a                       76%                 55.5%
CPA audit of financial                     53.8%                 47.6%
 statements
----------------------------------------------------------------------
\a Difference by ethnicity is statistically significant. 

                              Table 3.12c
                
                Percentage of Firms Required to Provide
                 Various Financial Information in Order
                   to Get a Bond, by Gender of Owner

                                  Owned by women    Not owned by women
Requirement                              (n=171)             (n=1,230)
----------------------------  ------------------  --------------------
Report of work on hand/job                 90.6%                   86%
 status
Personal financial                         91.8%                 85.9%
 statements\a
Compilation of financial                   82.5%                   81%
 statements
CPA review of financial                    84.2%                 76.9%
 statements\a
Letters of credit/bankers'                 71.3%                 64.8%
 acceptances
Corporate tax returns\a                    71.3%                 62.4%
Personal tax returns                       63.2%                 55.9%
CPA audit of financial                     50.9%                 47.6%
 statements
----------------------------------------------------------------------
\a Difference by gender is statistically significant. 

                                   Table 3.13a
                     
                     Percentage of Firms Required to Provide
                     Selected Financial Information More Than
                           Once a Year, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Requirement                   $500,000     million           maximum       firms
------------------------  ------------  ----------  ----------------  ----------
Report of work on hand/          48.6%       66.3%             82.1%       67.6%
 job status\a              (n\= 107)\b     (n=415)          (n= 179)    (n= 701)
Personal financial               20.2%        9.6%              9.1%       11.6%
 statements\a                  (n=178)     (n=529)           (n=186)     (n=893)
Compilation of financial         45.1%       41.9%             61.7%       46.6%
 statements\a                  (n=173)     (n=523)           (n=183)     (n=879)
CPA review of financial            27%       21.6%             27.7%       23.9%
 statements                    (n=174)     (n=528)           (n=177)     (n=879)
Letters of credit/               15.8%        7.8%              3.9%        8.5%
 bankers' acceptances\a        (n=114)     (n=360)           (n=127)     (n=601)
Corporate tax returns\a           8.4%        2.5%                \c        3.4%
                               (n=119)     (n=398)           (n=134)     (n=651)
Personal tax returns\a           10.5%          \c              4.4%        3.4%
                               (n=114)     (n=320)            (n=90)     (n=524)
CPA audit of financial           20.6%       12.9%              8.5%       13.3%
 statements\a                  (n=107)     (n=241)           (n=141)     (n=489)
--------------------------------------------------------------------------------
\a Differences by size of firm are statistically significant. 

\b "n" is the total number of firms required to provide the
information monthly, quarterly, twice a year, or annually. 

\c This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.13b
                
                Percentage of Firms Required to Provide
                Selected Financial Information More Than
                   Once a Year, by Ethnicity of Owner

                                                          Not owned by
Requirement                    Owned by minority              minority
----------------------------  ------------------  --------------------
Report of work on hand/job                 76.5%                 66.9%
 status                                 (n=51)\a               (n=647)
Personal financial                           25%                 10.4%
 statements\b                             (n=64)               (n=823)
Compilation of financial                   65.2%                 45.2%
 statements\b                             (n=66)               (n=808)
CPA review of financial                    34.8%                   23%
 statements\b                             (n=69)               (n=805)
Letters of credit/bankers'                 18.4%                  7.8%
 acceptances\b                            (n=38)               (n=562)
Corporate tax returns                         \c                  3.2%
                                          (n=52)               (n=596)
Personal tax returns\b                     11.3%                  2.6%
                                          (n=53)               (n=469)
CPA audit of financial                     29.3%                 11.9%
 statements\b                             (n=41)               (n=445)
----------------------------------------------------------------------
\a "n" is the total number of firms required to provide the
information monthly, quarterly, twice a year, or annually. 

\b Difference by ethnicity is statistically significant. 

\c This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.13c
                
                Percentage of Firms Required to Provide
                Selected Financial Information More Than
                    Once a Year, by Gender of Owner

Requirement                       Owned by women    Not owned by women
----------------------------  ------------------  --------------------
Report of work on hand/job                 71.8%                   67%
 status                                 (n=78)\b               (n=621)
Personal financial                         16.5%                 10.6%
 statements                              (n=115)               (n=772)
Compilation of financial                   49.5%                   46%
 statements                              (n=103)               (n=770)
CPA review of financial                    25.9%                 23.6%
 statements                              (n=116)               (n=757)
Letters of credit/bankers'                  9.9%                  8.1%
 acceptances                              (n=81)               (n=518)
Corporate tax returns                       5.5%                  3.1%
                                          (n=91)               (n=557)
Personal tax returns                        6.9%                  2.7%
                                          (n=72)               (n=448)
CPA audit of financial                     19.3%                 12.1%
 statements                               (n=57)               (n=428)
----------------------------------------------------------------------
\a Differences by gender are not statistically significant. 

\b "n" is the total number of firms required to provide the
information monthly, quarterly, twice a year, or annually. 

                                   Table 3.14a
                     
                      Amount of Collateral Required of Firms
                        to Obtain a Bond, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
Amount paid for                  Up to        $3.5    million to SBA       small
performance and payment       $500,000     million           maximum       firms
bonds                          (n=416)     (n=753)           (n=242)   (n=1,411)
------------------------  ------------  ----------  ----------------  ----------
Nothing                          66.3%       76.1%             83.5%       74.5%
1-50% of contract amount         22.4%       18.6%             12.8%       18.7%
51-100% of contract               8.4%        3.9%              2.9%        5.0%
 amount
More than 100% of                 2.9%        1.5%                \b        1.8%
 contract amount
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.14b
                
                 Amount of Collateral Required of Firms
                to Obtain a Bond, by Ethnicity of Owner

                                                          Not owned by
Amount paid for performance    Owned by minority              minority
and payment bonds                        (n=106)             (n=1,292)
----------------------------  ------------------  --------------------
Nothing                                    63.2%                 75.4%
1-50% of contract amount                   23.6%                 18.3%
51-100% of contract amount                 12.3%                  4.5%
More than 100% of contract                    \b                  1.9%
 amount
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.14c
                
                 Amount of Collateral Required of Firms
                  to Obtain a Bond, by Gender of Owner

Amount paid for performance       Owned by women    Not owned by women
and payment bonds                        (n=168)             (n=1,230)
----------------------------  ------------------  --------------------
Nothing                                    71.4%                 75.0%
1-50% of contract amount                   21.4%                 18.1%
51-100% of contract amount                  5.4%                  5.0%
More than 100% of contract                    \b                  1.8%
 amount
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                   Table 3.15a
                     
                        Percentage of Firms Asked to Meet
                     Various Conditions to Obtain a Bond, by
                                   Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Condition                      (n=421)     (n=759)           (n=240)  (n= 1,420)
------------------------  ------------  ----------  ----------------  ----------
Hire a financial                  5.0%        4.1%              4.2%        4.4%
 management firm,
 consulting firm, or CPA
 selected by the surety
 company
Establish an escrow               5.7%        2.2%              2.5%        3.3%
 account controlled by
 the surety company\a
Enter into arrangement            3.3%        2.5%              2.5%        2.7%
 that gives the surety
 company the right to
 manage the job being
 bonded, even when the
 firm is not in default
Purchase insurance from          26.8%       14.0%              4.2%       16.1%
 the bonding agent\a
At least one of the              36.8%       20.0%             12.1%       23.7%
 above four conditions\a
--------------------------------------------------------------------------------
\a Differences by size of firm are statistically significant. 

                              Table 3.15b
                
                   Percentage of Firms Asked to Meet
                Various Conditions to Obtain a Bond, by
                           Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Condition                                (n=105)             (n=1,303)
----------------------------  ------------------  --------------------
Hire a financial management                 9.5%                  3.9%
 firm, consulting firm, or
 CPA selected by the surety
 company\a
Establish an escrow account                12.4%                  2.6%
 controlled by the surety
 company\a
Enter into arrangement that                 7.6%                  2.4%
 gives the surety company
 the right to manage the job
 being bonded, even when the
 firm is not in default\a
Purchase insurance from the                21.9%                 15.5%
 bonding agent
At least one of the above                  42.9%                 21.9%
 four conditions\a
----------------------------------------------------------------------
\a Difference by ethnicity is statistically significant. 

                              Table 3.15c
                
                   Percentage of Firms Asked to Meet
                Various Conditions to Obtain a Bond, by
                            Gender of Owner

                                  Owned by women    Not owned by women
Condition                                (n=165)             (n=1,242)
----------------------------  ------------------  --------------------
Hire a financial management                 3.0%                  4.5%
 firm, consulting firm, or
 CPA selected by the surety
 company
Establish an escrow account                 3.6%                  3.2%
 controlled by the surety
 company
Enter into arrangement that                 2.4%                  2.8%
 gives the surety company
 the right to manage the job
 being bonded, even when the
 firm is not in default
Purchase insurance from the                16.4%                 15.7%
 bonding agent
At least one of the above                  23.6%                 23.2%
 four conditions
----------------------------------------------------------------------
\a Differences by gender are not statistically significant. 

                                   Table 3.16a
                     
                       Frequency With Which Firms Had Been
                     Denied Bonds Since 1990, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Number of denials since       $500,000     million           maximum       firms
1990                           (n=439)     (n=776)           (n=245)   (n=1,460)
------------------------  ------------  ----------  ----------------  ----------
None                             82.0%       76.3%             82.0%       79.0%
1-5                              13.9%       19.3%             13.9%       16.8%
6-12                              3.4%        3.4%              3.7%        3.4%
More than 12                        \b        1.0%                \b        0.8%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.16b
                
                  Frequency With Which Firms Had Been
                Denied Bonds Since 1990, by Ethnicity of
                                 Owner

                                                          Not owned by
                               Owned by minority              minority
Number of denials since 1990             (n=107)             (n=1,339)
----------------------------  ------------------  --------------------
None                                       64.5%                 80.1%
1-5                                        27.1%                 16.1%
6-12                                        7.5%                  3.1%
More than 12                                  \b                  0.8%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.16c
                
                  Frequency With Which Firms Had Been
                 Denied Bonds Since 1990, by Gender of
                                 Owner

                                  Owned by women    Not owned by women
Number of denials since 1990             (n=173)             (n=1,273)
----------------------------  ------------------  --------------------
None                                       78.0%                 79.2%
1-5                                        16.2%                 16.8%
6-12                                        4.6%                  3.2%
More than 12                                  \b                  0.8%
----------------------------------------------------------------------
\a Differences in distribution by gender are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                   Table 3.17a
                     
                      Percentage of Firms Reporting Various
                       Reasons Why They Were Last Denied a
                              Bond, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Reason\a                        (n=70)     (n=159)            (n=41)     (n=270)
------------------------  ------------  ----------  ----------------  ----------
Firm's financial status          71.4%       64.8%             65.9%       66.7%
 not good enough (net
 worth, operating
 capital, etc.)
Firm had never done that         28.6%       28.9%             31.7%       29.3%
 large a job, never
 worked in that location
 before, or never done
 that kind of work
Not enough time to               22.9%       13.8%              9.8%       15.6%
 process the bond
Firm had not done enough         24.3%       11.3%                \c       13.7%
 bonded work\b
No more bonds until              11.4%       12.6%             19.5%       13.3%
 current work completed
Firm not in business             20.0%        8.2%                \c       10.4%
 long enough\b
Surety company did not           11.4%        8.8%                0%        8.1%
 want to bond
 subcontractors
Size of bond requested            7.1%        6.9%              9.8%        7.4%
 would have required a
 change in surety
 company
No bonds until claims             5.7%        5.7%             12.2%        6.7%
 against firm or legal
 disputes were resolved
Firm chose not to make            5.7%        5.7%              9.8%        6.3%
 changes in business
 practices or meet other
 conditions required by
 surety
Firm could not obtain            11.4%        4.4%                \c        5.9%
 government guarantee of
 bond (SBA, DOT, etc.)
Firm's key people were            5.7%          \c                \c        2.2%
 not experienced enough
Firm had defaulted on a             0%          0%                \c          \c
 previous job
Other reasons                    10.0%       13.2%             14.6%       12.6%
Reasons given were not           12.9%        8.2%              7.3%        9.3%
 clear or understandable
No reason given for                 0%          0%                0%          0%
 denial\d
--------------------------------------------------------------------------------
\a Reasons for last denials prior to 1990 are not included. 

\b Differences by size of firm are statistically significant. 

\c This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

\d Some respondents who reported a reason or said the reasons given
were not clear or understandable also said no reasons were given.  We
did not include these respondents in this category. 

                              Table 3.17b
                
                 Percentage of Firms Reporting Various
                  Reasons Why They Were Last Denied a
                      Bond, by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Reason\a                                  (n=35)               (n=234)
----------------------------  ------------------  --------------------
Firm's financial status not                68.6%                 66.2%
 good enough (net worth,
 operating capital, etc.)
Firm had never done that                   37.1%                 28.2%
 large a job, never worked
 in that location before, or
 never done that kind of
 work
Not enough time to process                 17.1%                 15.4%
 the bond
Firm had not done enough                   11.4%                 13.7%
 bonded work
No more bonds until current                31.4%                 10.3%
 work completed\b
Firm not in business long                  17.1%                  9.4%
 enough
Surety company did not want                14.3%                  7.3%
 to bond subcontractors
Size of bond requested would               11.4%                  6.8%
 have required a change in
 surety company
No more bonds until claims                 14.3%                  5.6%
 against firm or legal
 disputes were resolved
Firm chose not to make                        \c                  6.4%
 changes in business
 practices or meet other
 conditions required by
 surety
Firm could not obtain                      14.3%                  4.7%
 government guarantee or
 bond (SBA, DOT, etc.)\b
Firm's key people were not                    0%                  2.6%
 experienced enough
Firm had defaulted on a                       0%                    \c
 previous job
Other reasons                                 \c                 13.7%
Reasons given were not clear               20.0%                  7.7%
 or understandable\b
No reason given for denial\d                  0%                    0%
----------------------------------------------------------------------
\a Reasons for last denials prior to 1990 are not included. 

\b Difference by ethnicity is statistically significant. 

\c This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

\d Some respondents who reported a reason or said the reasons given
were not clear or understandable also said no reasons were given.  We
did not include these respondents in this category. 

                              Table 3.17c
                
                 Percentage of Firms Reporting Various
                  Reasons Why They Were Last Denied a
                        Bond, by Gender of Owner

                                  Owned by women    Not owned by women
Reason\a                                  (n=34)               (n=234)
----------------------------  ------------------  --------------------
Firm's financial status not                73.5%                 65.8%
 good enough (net worth,
 operating capital, etc.)
Firm had never done that                   32.4%                 28.6%
 large a job, never worked
 in that location before, or
 never done that kind of
 work
Not enough time to process                 14.7%                 15.8%
 the bond
Firm had not done enough                      \b                 15.0%
 bonded work
No more bonds until current                17.6%                 12.8%
 work completed
Firm not in business long                     \b                 10.3%
 enough
Surety company did not want                   \b                  8.5%
 to bond subcontractors
Size of bond requested would                  0%                  7.7%
 have required a change in
 surety company
No bonds until claims                         \b                  6.4%
 against firm or legal
 disputes were resolved
Firm chose not to make                     14.7%                  5.1%
 changes in business
 practices or meet other
 conditions required by
 surety\c
Firm could not obtain                         \b                  6.0%
 government guarantee of
 bond (SBA, DOT, etc.)
Firm's key people were not                    \b                  2.1%
 experienced enough
Firm had defaulted on a                       0%                    \b
 previous job
Other reasons                                 \b                 14.1%
Reasons given were not clear                  \b                 10.3%
 or understandable
No reason given for denial\d                  0%                    0%
----------------------------------------------------------------------
\a Reasons for last denials prior to 1990 are not included. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

\c Difference by gender is statistically significant. 

\d Some respondents who reported a reason or said the reasons given
were not clear or understandable also said no reasons were given.  We
did not include these respondents in this category. 

                                   Table 3.18a
                     
                     Percentage of Firms That Were Given Oral
                     or Written Reasons for Their Most Recent
                     Bond Denial After 1989, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Type of reason given            (n=70)     (n=159)            (n=41)     (n=270)
------------------------  ------------  ----------  ----------------  ----------
Oral reasons only                78.6%       86.2%             92.7%       85.2%
At least one written             21.4%       13.8%                \b       14.8%
 response
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.18b
                
                Percentage of Firms That Were Given Oral
                or Written Reasons for Their Most Recent
                Bond Denial After 1989, by Ethnicity of
                                 Owner

                                                          Not owned by
                               Owned by minority              minority
Type of reason given                      (n=35)               (n=234)
----------------------------  ------------------  --------------------
Oral reasons only                          68.6%                 87.6%
At least one written                       31.4%                 12.4%
 response
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

                              Table 3.18c
                
                Percentage of Firms That Were Given Oral
                or Written Reasons for Their Most Recent
                  Bond Denial After 1989, by Gender of
                                 Owner

                                  Owned by women    Not owned by women
Type of reason given                      (n=34)               (n=234)
----------------------------  ------------------  --------------------
Oral reasons only                          73.5%                 86.8%
At least one written                       26.5%                 13.2%
 response
----------------------------------------------------------------------
\a Differences in distribution by gender are statistically
significant. 

                                   Table 3.19a
                     
                     Time Taken to Deny Last Bond Request for
                              Firms, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
Number of days to get            Up to        $3.5    million to SBA       small
last bond denial in 1990      $500,000     million           maximum       firms
or later                        (n=53)     (n=110)            (n=30)     (n=193)
------------------------  ------------  ----------  ----------------  ----------
Up to 10                         62.3%       63.6%             60.0%       62.7%
11-30                            28.3%       30.0%             33.3%       30.1%
More than 30                      9.4%        6.4%                \b        7.3%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.19b
                
                Time Taken to Deny Last Bond Request for
                      Firms, by Ethnicity of Owner

                                                          Not owned by
Number of days to get last     Owned by minority              minority
bond denial in 1990 or later              (n=24)               (n=168)
----------------------------  ------------------  --------------------
Up to 10                                   37.5%                 66.1%
11-30                                      45.8%                 28.0%
More than 30                               16.7%                  6.0%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

                              Table 3.19c
                
                Time Taken to Deny Last Bond Request for
                       Firms, by Gender of Owner

Number of days to get last        Owned by women    Not owned by women
bond denial in 1990 or later              (n=24)               (n=167)
----------------------------  ------------------  --------------------
Up to 10                                   58.3%                 64.1%
11-30                                      20.8%                 30.5%
More than 30                               20.8%                  5.4%
----------------------------------------------------------------------
\a Differences in distribution by gender are statistically
significant. 

                               Table 3.20
                
                  Time Taken for Most Recent Denial in
                1993 for Firms That Lost an Opportunity
                  to Bid on a Job Because of Delays in
                       Processing a Bond Request

                                 Lost at least one       Never lost an
                                opportunity to bid  opportunity to bid
                                           in 1993             in 1993
Number of days                              (n=61)              (n=33)
------------------------------  ------------------  ------------------
Up to 10                                     59.0%               72.7%
11-30                                        34.4%               21.2%
More than 30                                  6.6%                  \b
----------------------------------------------------------------------
\a Differences in distribution are not statistically significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                   Table 3.21a
                     
                     Changes in Bonding Requirements Over the
                          Last 5 Years, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Change reported                (n=383)     (n=726)           (n=237)   (n=1,346)
------------------------  ------------  ----------  ----------------  ----------
Requirements relaxed             11.7%       13.6%             16.5%       13.6%
Requirements tightened           39.4%       46.3%             41.4%       43.5%
Requirements stayed              48.8%       40.1%             42.2%       42.9%
 about the same
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                              Table 3.21b
                
                Changes in Bonding Requirements Over the
                  Last 5 Years, by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Change reported                          (n=101)             (n=1,232)
----------------------------  ------------------  --------------------
Requirements relaxed                       16.8%                 13.2%
Requirements tightened                     54.5%                 42.7%
Requirements stayed about                  28.7%                 44.1%
 the same
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

                              Table 3.21c
                
                Changes in Bonding Requirements Over the
                    Last 5 Years, by Gender of Owner

                                  Owned by women    Not owned by women
Change reported                          (n=162)             (n=1,171)
----------------------------  ------------------  --------------------
Requirements relaxed                       13.6%                 13.6%
Requirements tightened                     41.4%                 43.6%
Requirements stayed about                  45.1%                 42.8%
 the same
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                   Table 3.22a
                     
                      Percentage of Firms Reporting Various
                      Reasons Given by Agents, Brokers, and
                       Surety Companies to Explain Why They
                     Tightened up Requirements for Bonds, by
                                   Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Reason given                   (n=149)     (n=334)            (n=98)     (n=581)
------------------------  ------------  ----------  ----------------  ----------
Firm requested increase          12.1%       19.5%             17.3%       17.2%
 in capacity
Firm's financial                 31.5%       39.8%             28.6%       35.8%
 strength declined (less
 net worth, less
 collateral, diversion
 of profits to other
 business activities,
 etc.)
Firm's key personnel                \b        4.2%              4.1%        3.3%
 changed
Surety company's policy          37.6%       38.9%             42.9%       39.2%
 changed
New surety agent or              14.8%       15.6%             16.3%       15.5%
 company used
General economic                 44.3%       49.4%             49.0%       48.0%
 conditions or new
 government regulations
Other reasons                     3.4%        6.3%              8.2%        5.9%
Reasons given to firm by          9.4%        6.6%              5.1%        7.1%
 agent or broker not
 clear
No reasons given to firm          6.7%        3.9%                \b        4.1%
 by agent or broker
--------------------------------------------------------------------------------
\a Differences by size of firm are not statistically significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.22b
                
                 Percentage of Firms Reporting Various
                 Reasons Given by Agents, Brokers, and
                  Surety Companies to Explain Why They
                Tightened up Requirements for Bonds, by
                           Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Reason given                              (n=55)               (n=522)
----------------------------  ------------------  --------------------
Firm requested increase in                 23.6%                 16.7%
 capacity
Firm's financial strength                  58.2%                 33.7%
 declined (less net worth,
 less collateral, diversion
 of profits to other
 business activities,
 etc.)\a
Firm's key personnel changed                  \b                  3.3%
Surety company's policy                    30.9%                 40.0%
 changed
New surety agent or company                16.4%                 15.5%
 used
General economic conditions                29.1%                 50.0%
 or new government
 regulations\a
Other reasons                                 \b                  6.3%
Reasons given to firm by                   16.4%                  6.1%
 agent or broker not clear\a
No reasons given to firm by                   \b                  3.6%
 agent or broker
----------------------------------------------------------------------
\a Difference by ethnicity is statistically significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                   Table 3.22c
                     
                      Percentage of Firms Reporting Various
                      Reasons Given by Agents, Brokers, and
                       Surety Companies to Explain Why They
                     Tightened up Requirements for Bonds, by
                                 Gender of Owner

                                            Owned by women    Not owned by women
Reason given                                        (n=67)               (n=507)
--------------------------------------  ------------------  --------------------
Firm requested increase in capacity                  16.4%                 17.6%
Firm's financial strength declined                   37.3%                 35.9%
 (less net worth, less collateral,
 diversion of profits to other
 business activities, etc.)
Firm's key personnel changed                            \a                  3.2%
Surety company's policy changed                      38.8%                 39.3%
New surety agent or company used                     13.4%                 16.0%
General economic conditions or new                   46.3%                 48.1%
 government regulations
Other reasons                                         7.5%                  5.7%
Reasons given to firm by agent or                    16.4%                  5.9%
 broker not clear\b
No reasons given to firm by agent or                    \a                  3.9%
 broker
--------------------------------------------------------------------------------
\a This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

\b Difference by gender is statistically significant. 

                                   Table 3.23a
                     
                     Percentage of Firms Paying Various Types
                      of Fees for Bid Bonds in 1993, by Size
                                     of Firm

Type of fee paid
----------------  ------  ------  ------  ------  ------  ------  ------  ------
No fee\b                   25.5%           48.6%           70.5%           48.2%
Percentage of              24.0%           15.4%           13.0%           16.7%
 contract
 amount\b
Up to 2.5%\b       38.0%           51.8%           73.1%           50.9%
More than 2.5%     62.0%           48.2%           26.9%           49.1%
Flat fee for               36.1%           30.4%           25.5%           30.6%
 each bid bond\c
Up to $200\c       82.7%           84.1%           94.1%           85.5%
Over $200          17.3%           15.9%            5.9%           14.5%
Annual service             21.2%           16.5%            8.0%           15.7%
 fee\b
Up to $200\c       77.3%           66.3%           68.8%           69.8%
Over $200          22.7%           33.7%           31.3%           30.2%
--------------------------------------------------------------------------------
\a Column totals exceed 100 percent because some firms paid more than
one type of fee. 

\b Difference in distribution by size of firm is statistically
significant. 

\c Difference in distribution by size of firm is not statistically
significant. 

                              Table 3.23b
                
                Percentage of Firms Paying Various Types
                   of Fees for Bid Bonds in 1993, by
                           Ethnicity of Owner

Type of fee paid
--------------------------------------  ------  ------  ------  ------
No fee                                           40.7%           49.0%
Percentage of contract amount                    16.9%           16.7%
Up to 2.5%                               60.0%           50.3%
More than 2.5%                           40.0%           49.7%
Flat fee for each bid bond                       33.9%           30.4%
Up to $200                               80.0%           85.8%
Over $200                                20.0%           14.2%
Annual service fee                               16.9%           15.5%
Up to $200                               60.0%           70.1%
Over $200                                40.0%           29.9%
----------------------------------------------------------------------
\a Column totals exceed 100 percent because some firms paid more than
one type of fee. 

\b Differences by ethnicity are not statistically significant. 

                              Table 3.23c
                
                Percentage of Firms Paying Various Types
                of Fees for Bid Bonds in 1993, by Gender
                                of Owner

Type of fee paid
------------------------------  --------  --------  --------  --------
No fee\b                                     44.2%               49.1%
Percentage of contract                       13.3%               17.3%
 amount\b
Up to 2.5%\c                       62.5%               50.0%
More than 2.5%                     37.5%               50.0%
Flat fee for each bid bond\d           4      0.8%               28.9%
Up to $200\c                       93.9%               83.5%
Over $200                             \e               16.5%
Annual service fee\b                   1      5.8%               15.6%
Up to $200\c                       68.4%               70.3%
Over $200                          31.6%               29.7%
----------------------------------------------------------------------
\a Column totals exceed 100 percent because some firms paid more than
one type of fee. 

\b Difference by gender is not statistically significant. 

\c Differences in distribution by gender are not statistically
significant. 

\d Difference by gender is statistically significant. 

\e This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                   Table 3.24a
                     
                       Average Fee (Percentage of Contract)
                     Paid in 1993 for Performance and Payment
                      Bonds for Contracts up to $100,000, by
                                   Size of Firm

                                       $500,001-                         All SBA
                               Up to        $3.5   Over $3.5 million       small
                            $500,000     million      to SBA maximum       firms
                             (n=265)     (n=653)             (n=222)   (n=1,140)
----------------------  ------------  ----------  ------------------  ----------
Average fee                    3.47%       2.31%               1.60%       2.44%
                           (+/-0.39)   (+/-0.14)           (+/-0.14)   (+/-0.13)
--------------------------------------------------------------------------------
\a Differences by size of firm are statistically significant. 

                              Table 3.24b
                
                  Average Fee (Percentage of Contract)
                Paid in 1993 for Performance and Payment
                 Bonds for Contracts up to $100,000, by
                           Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
                                          (n=77)             (n=1,053)
----------------------------  ------------------  --------------------
Average fee                                2.70%                 2.42%
                                       (+/-0.77)             (+/-0.13)
----------------------------------------------------------------------
\a Difference by ethnicity is not statistically significant. 

                              Table 3.24c
                
                  Average Fee (Percentage of Contract)
                Paid in 1993 for Performance and Payment
                 Bonds for Contracts up to $100,000, by
                            Gender of Owner

                                  Owned by women    Not owned by women
                                         (n=136)               (n=993)
----------------------------  ------------------  --------------------
Average fee                                2.07%                 2.45%
                                       (+/-0.17)             (+/-0.14)
----------------------------------------------------------------------
\a Difference by gender is statistically significant. 

                                    Table 3.25
                     
                     Fees Paid in 1993 for Bid, Performance,
                          and Payment Bonds, by Standard
                            Industrial Classification

                                                                         Special
                                      Building                             trade
1993 fee                          construction  Heavy construction  construction
--------------------------  ------------------  ------------------  ------------
Percentage of firms that                 44.4%               41.7%         59.1%
 paid for bid bonds\a                  (n=248)             (n=180)       (n=513)
Average fee paid for first                2.15                2.06          2.67
 $100,000 of contract                (+/-0.18)           (+/-0.26)     (+/-0.20)
 amount for performance                (n=275)             (n=191)       (n=666)
 and payment bonds,
 expressed as a percentage
 of contract amount\a
--------------------------------------------------------------------------------
\a Differences between the special trade construction and the other
firms are statistically significant. 

                              Table 3.26a
                
                  Average Fee (Percentage of Contract)
                Paid in 1993 for Performance and Payment
                 Bonds for Contracts up to $100,000, by
                   Size of Firm, Standard Industrial
                 Classification, and Ethnicity of Owner

                                                          Not owned by
Average revenues of firm         Owned by minority            minority
------------------------------  ------------------  ------------------
Up to $500,000
----------------------------------------------------------------------
Building and heavy                           2.81%               3.47%
 construction contractors                (+/-0.50)           (+/-0.86)
                                            (n=10)              (n=59)
Special trade contractors                    4.28%               3.42%
                                         (+/-3.45)           (+/-0.41)
                                            (n=17)             (n=174)
$500,001-$3.5 million
Building and heavy                           2.13%               2.09%
 construction contractors                (+/-0.36)           (+/-0.13)
                                            (n=16)             (n=239)
Special trade contractors                    2.55%               2.45%
                                         (+/-1.18)           (+/-0.23)
                                            (n=16)             (n=373)
Over $3.5 million to SBA
 maximum
Building and heavy                           1.59%               1.53%
 construction contractors                (+/-0.47)           (+/-0.20)
                                            (n=11)             (n=129)
Special trade contractors                    2.02%               1.69%
                                         (+/-0.82)           (+/-0.24)
                                             (n=6)              (n=72)
----------------------------------------------------------------------
\a Differences by ethnicity are not statistically significant. 

                              Table 3.26b
                
                  Average Fee (Percentage of Contract)
                Paid in 1993 for Performance and Payment
                 Bonds for Contracts up to $100,000, by
                   Size of Firm, Standard Industrial
                  Classification, and Gender of Owner

Average revenues of firm          Owned by women    Not owned by women
----------------------------  ------------------  --------------------
Up to $500,000
----------------------------------------------------------------------
Building and heavy                         1.92%                 3.70%
 construction contractors\a            (+/-0.55)             (+/-0.87)
                                          (n=13)                (n=57)
Special trade contractors\a                2.63%                 3.44%
                                       (+/-0.51)             (+/-0.43)
                                          (n=24)               (n=163)
$500,001-$3.5 million
Building and heavy                         1.95%                 2.10%
 construction contractors              (+/-0.32)             (+/-0.14)
                                          (n=25)               (n=230)
Special trade contractors                  2.03%                 2.52%
                                       (+/-0.28)             (+/-0.26)
                                          (n=55)               (n=335)
Over $3.5 million to SBA
 maximum
Building and heavy                         1.64%                 1.53%
 construction contractors              (+/-0.45)             (+/-0.21)
                                          (n=14)               (n=127)
Special trade contractors                  1.92%                 1.70%
                                       (+/-1.15)             (+/-0.24)
                                           (n=5)                (n=73)
----------------------------------------------------------------------
\a Difference by gender is statistically significant. 

                                   Table 3.27a
                     
                     Percentage of 1993 Construction Revenues
                      Covered by Bonds for Firms, by Size of
                                       Firm

                                         $500,001-         Over $3.5     All SBA
Percentage of 1993               Up to        $3.5    million to SBA       small
revenues from bonded          $500,000     million           maximum       firms
work                           (n=404)     (n=755)           (n=232)   (n=1,391)
------------------------  ------------  ----------  ----------------  ----------
Average                          24.2%       32.4%             48.7%       32.8%
                             (+/-3.14)   (+/-2.41)         (+/-4.47)   (+/-1.81)

Distribution
--------------------------------------------------------------------------------
0%                               35.6%       18.0%              5.6%       21.1%
1-19%                            24.0%       29.9%             21.1%       26.7%
20-39%                           12.6%       17.0%             16.8%       15.7%
40-59%                           10.9%       10.3%             13.8%       11.1%
60-79%                            5.2%        7.5%             12.9%        7.8%
80-99%                            5.2%       11.9%             22.8%       11.8%
100%                              6.4%        5.3%              6.9%        5.9%
--------------------------------------------------------------------------------
\a Differences among averages and distributions by size of firm are
statistically significant. 

                              Table 3.27b
                
                Percentage of 1993 Construction Revenues
                Covered by Bonds for Firms, by Ethnicity
                                of Owner

                                                          Not owned by
Percentage of 1993 revenues    Owned by minority              minority
from bonded work                         (n=104)             (n=1,273)
----------------------------  ------------------  --------------------
Average                                    41.5%                 32.2%
                                       (+/-7.38)             (+/-1.87)

Distribution
----------------------------------------------------------------------
0%                                         20.2%                 21.2%
1-19%                                      21.2%                 27.0%
20-39%                                     10.6%                 16.0%
40-59%                                      8.7%                 11.2%
60-79%                                      9.6%                  7.7%
80-99%                                     20.2%                 11.2%
100%                                        9.6%                  5.6%
----------------------------------------------------------------------
\a Differences in averages and distributions by ethnicity are
statistically significant. 

                              Table 3.27c
                
                Percentage of 1993 Construction Revenues
                Covered by Bonds for Firms, by Gender of
                                 Owner

Percentage of 1993 revenues       Owned by women    Not owned by women
from bonded work                         (n=165)             (n=1,212)
----------------------------  ------------------  --------------------
Average                                    35.7%                 32.5%
                                       (+/-5.57)             (+/-1.92)

Distribution
----------------------------------------------------------------------
0%                                         23.0%                 20.9%
1-19%                                      23.0%                 26.9%
20-39%                                     12.1%                 16.3%
40-59%                                     10.9%                 11.1%
60-79%                                      9.7%                  7.6%
80-99%                                     13.9%                 11.6%
100%                                        7.3%                  5.7%
----------------------------------------------------------------------
\a Differences in averages and distributions by gender are not
statistically significant. 

                               Table 3.28
                
                Percentage of 1993 Construction Revenues
                Covered by Bonds for Firms, by Standard
                       Industrial Classification

                                           Average percent of revenues
Standard industrial classification                                  \a
----------------------------------------  ----------------------------
Building construction                                           39.80%
                                                             (t/-3.95)
                                                               (n=317)
Heavy construction                                              49.45%
                                                             (+/-5.07)
                                                               (n=225)
Special trade construction                                       25.5%
                                                             (+/-2.05)
                                                               (n=840)
----------------------------------------------------------------------
\a Differences among firms by standard industrial classification are
statistically significant. 

                                   Table 3.29a
                     
                        Bonding Capacity (Largest Bond) of
                              Firms, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Year                          $500,000     million           maximum       firms
------------------------  ------------  ----------  ----------------  ----------
1990                           (n=169)     (n=399)           (n=165)     (n=733)
Average\a                     $244,772                    $3,084,024
                                  (+/-  $1,530,272      (+/-507,530)  $1,583,641
                              101,773)        (+/-                          (+/-
                                        1,474,802)                      813,703)
Distribution\b
Under $100,000                   42.6%       14.0%                \c       17.6%
$100,000-$499,999                46.2%       36.8%             10.3%       33.0%
$500,000-$999,999                 5.9%       23.3%             13.3%       17.1%
$1,000,000 and over               5.3%       25.8%             75.8%       32.3%
1991                           (n=156)     (n=391)           (n=165)     (n=712)
Average\a                           \c          \c        $3,054,305
                                                        (+/-510,976)  $1,686,225
                                                                            (+/-
                                                                        861,026)
Distribution\b
Under $100,000                   41.0%       15.6%              1.8%       18.0%
$100,000-$499,999                47.4%       35.5%              6.1%       31.3%
$500,000-$999,999                 5.8%       22.3%             14.5%       16.9%
$1,000,000 and over               5.8%       26.6%             77.6%       33.8%
1992                           (n=187)     (n=423)           (n=179)     (n=789)
Average\a                           \c                    $3,377,315
                                        $1,468,204      (+/-579,808)  $1,668,616
                                              (+/-                          (+/-
                                        1,389,801)                      769,581)
Distribution\b
Under $100,000                   45.5%       13.2%              2.8%       18.5%
$100,000-$499,999                45.5%       36.6%              9.5%       32.6%
$500,000-$999,999                 3.7%       21.7%             11.7%       15.2%
$1,000,000 and over               5.3%       28.4%             76.0%       33.7%
1993                           (n=268)     (n=617)           (n=231)   (n=1,116)
Average\a,d                   $276,439                    $3,782,612
                           (+/-79,271)  $1,254,340      (+/-646,869)  $1,542,829
                                              (+/-                          (+/-
                                          953,794)                      548,778)
Distribution\b
Under $100,000                   46.6%       16.7%              2.6%       21.0%
$100,000-$499,999                40.7%       35.8%             12.6%       32.2%
$500,000-$999,999                 5.6%       19.9%             10.8%       14.6%
$1,000,000 and over               7.1%       27.6%             74.0%       32.3%
--------------------------------------------------------------------------------
\a Difference between the smallest firms and the firms with average
revenues over $3.5 million is statistically significant. 

\b Differences in distribution by size of firm are statistically
significant. 

\c This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

\d Difference between the medium-size firms and the firms with
average revenues over $3.5 million is statistically significant. 

                              Table 3.29b
                
                   Bonding Capacity (Largest Bond) of
                      Firms, by Ethnicity of Owner

                                                          Not owned by
Year                           Owned by minority              minority
----------------------------  ------------------  --------------------
1990                                      (n=61)               (n=667)
Average                                 $849,431            $1,659,863
                                    (+/-399,956)          (+/-893,357)
Distribution
Under $100,000                             23.0%                 17.1%
$100,000-$499,999                          31.1%                 33.3%
$500,000-$999,999                          23.0%                 16.2%
$1,000,000 and over                        23.0%                 33.4%
1991                                      (n=55)               (n=654)
Average                                 $764,952             1,770,596
                                  (+/-$ 397,536)          (+/-936,604)
Distribution
Under $100,000                             16.4%                 17.9%
$100,000-$499,999                          43.6%                 30.4%
$500,000-$999,999                          18.2%                 16.7%
$1,000,000 and over                        21.8%                 35.0%
1992                                      (n=65)               (n=721)
Average                                 $852,494            $1,748,304
                                    (+/-339,966)          (+/-841,446)
Distribution
Under $100,000                             20.0%                 18.2%
$100,000-$499,999                          32.3%                 32.7%
$500,000-$999,999                          20.0%                 14.7%
$1,000,000 and over                        27.7%                 34.4%
1993                                      (n=79)             (n=1,028)
Average                               $1,064,159            $1,587,168
                                    (+/-318,259)          (+/-595,175)
Distribution
Under $100,000                             15.2%                 21.4%
$100,000-$499,999                          34.2%                 31.9%
$500,000-$999,999                          12.7%                 14.7%
$1,000,000 and over                        38.0%                 32.0%
----------------------------------------------------------------------
\a Differences by ethnicity are not statistically significant. 

                              Table 3.29c
                
                   Bonding Capacity (Largest Bond) of
                       Firms, by Gender of Owner

Year                              Owned by women    Not owned by women
----------------------------  ------------------  --------------------
1990                                      (n=82)               (n=644)
Average                                 $769,633            $1,702,718
                                    (+/-285,499)          (+/-925,168)
Distribution
Under $100,000                             13.4%                 17.9%
$100,000-$499,999                          39.0%                 32.1%
$500,000-$999,999                          23.2%                 16.3%
$1,000,000 and over                        24.4%                 33.7%
1991                                      (n=82)               (n=624)
Average                                 $788,748             1,818,766
                                  (+/-$ 295,654)          (+/-981,354)
Distribution
Under $100,000                             19.5%                 17.6%
$100,000-$499,999                          36.6%                 30.4%
$500,000-$999,999                          18.3%                 16.7%
$1,000,000 and over                        25.6%                 35.3%
1992                                      (n=97)               (n=685)
Average                                 $824,472             1,803,605
                                  (+/-$ 264,334)          (+/-885,289)
Distribution
Under $100,000                             23.7%                 17.5%
$100,000-$499,999                          33.0%                 32.4%
$500,000-$999,999                          11.3%                 15.8%
$1,000,000 and over                        32.0%                 34.3%
1993                                     (n=139)               (n=968)
Average                                 $975,626            $1,633,218
                                    (+/-249,112)          (+/-631,483)
Distribution
Under $100,000                             18.0%                 21.3%
$100,000-$499,999                          36.0%                 31.5%
$500,000-$999,999                          15.8%                 14.5%
$1,000,000 and over                        30.2%                 32.7%
----------------------------------------------------------------------
\a Differences by gender are not statistically significant. 

                                   Table 3.30a
                     
                       Bonding Capacity (Total Program) of
                              Firms, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Year                          $500,000     million           maximum       firms
------------------------  ------------  ----------  ----------------  ----------
1990                           (n=186)     (n=436)           (n=172)     (n=794)
Average\a                     $305,807                    $6,874,462
                           (+/-99,008)  $2,978,835    (+/-1,197,281)  $3,196,549
                                              (+/-                          (+/-
                                        2,709,313)                    1,517,353)
Distribution\b
Under $100,000                   39.8%        7.8%              0.0%       13.6%
$100,000-$499,999                38.7%       26.8%              3.5%       24.6%
$500,000-$999,999                12.4%       17.9%              5.8%       14.0%
$1,000,000 and over               9.1%       47.5%             90.7%       47.9%
1991                           (n=172)     (n=429)           (n=171)     (n=772)
Average\a                                                 $7,004,657
                                    \d  $2,872,090    (+/-1,257,766)  $3,349,015
                                              (+/-                          (+/-
                                        2,747,826)                    1,578,856)
Distribution\b
Under $100,000                   36.6%        7.5%                \d       12.4%
$100,000-$499,999                41.9%       24.2%              2.3%       23.3%
$500,000-$999,999                12.2%       18.9%              4.7%       14.2%
$1,000,000 and over               9.3%       49.4%             92.4%       50.0%
1992                           (n=206)     (n=462)           (n=181)     (n=849)
Average\a,c                                               $7,636,781
                                    \d  $2,862,378    (+/-1,451,977)  $3,587,826
                                              (+/-                          (+/-
                                        2,548,947)                    1,504,098)
Distribution\b
Under $100,000                   38.8%        6.5%                \d       13.2%
$100,000-$499,999                41.3%       22.9%              3.9%       23.3%
$500,000-$999,999                11.2%       19.5%              3.9%       14.1%
$1,000,000 and over               8.7%       51.1%             91.2%       49.4%
1993                           (n=279)     (n=634)           (n=231)   (n=1,144)
Average\a,c                   $367,208                    $7,903,661
                                  (+/-  $2,394,450    (+/-1,508,042)  $3,012,481
                              104,196)        (+/-                          (+/-
                                        1,858,457)                    1,084,334)
Distribution\b
Under $100,000                   41.6%       10.6%              1.7%       16.3%
$100,000-$499,999                39.8%       24.3%              9.1%       25.0%
$500,000-$999,999                 8.2%       18.8%              5.2%       13.5%
$1,000,000 and over              10.4%       46.4%             84.0%       45.2%
--------------------------------------------------------------------------------
\a Difference between the smallest firms and the firms with average
revenues over $3.5 million is statistically significant. 

\b Differences in distribution by size of firm are statistically
significant. 

\c Difference between the medium-size firms and the firms with
average revenues over $3.5 million is statistically significant. 

\d This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.30b
                
                  Bonding Capacity (Total Program) of
                      Firms, by Ethnicity of Owner

                                                          Not owned by
Year                           Owned by minority              minority
----------------------------  ------------------  --------------------
1990                                      (n=64)               (n=725)
Average\a                             $1,596,537            $3,355,471
                                    (+/-685,669)        (+/-1,660,340)
Distribution\b
Under $100,000                             23.4%                 12.7%
$100,000-$499,999                          23.4%                 24.7%
$500,000-$999,999                          12.5%                 13.9%
$1,000,000 and over                        40.6%                 48.7%
1991                                      (n=57)               (n=712)
Average\a                             $1,625,849            $3,500,304
                                    (+/-727,110)        (+/-1,710,589)
Distribution\c
Under $100,000                             14.0%                 12.1%
$100,000-$499,999                          36.8%                 22.3%
$500,000-$999,999                           7.0%                 14.7%
$1,000,000 and over                        42.1%                 50.8%
1992                                      (n=65)               (n=781)
Average\a                             $1,820,176            $3,747,957
                                    (+/-673,358)        (+/-1,633,734)
Distribution\b
Under $100,000                             13.8%                 12.9%
$100,000-$499,999                          27.7%                 23.0%
$500,000-$999,999                          15.4%                 14.0%
$1,000,000 and over                        43.1%                 50.1%
1993                                      (n=79)             (n=1,056)
Average\a                             $2,290,703            $3,086,073
                                    (+/-735,083)        (+/-1,173,345)
Distribution\b
Under $100,000                             10.1%                 16.8%
$100,000-$499,999                          26.6%                 24.8%
$500,000-$999,999                          16.5%                 13.1%
$1,000,000 and over                        46.8%                 45.4%
----------------------------------------------------------------------
\a Difference by ethnicity is not statistically significant. 

\b Differences in distribution by ethnicity are not statistically
significant. 

\c Differences in distribution by ethnicity are statistically
significant. 

                              Table 3.30c
                
                  Bonding Capacity (Total Program) of
                       Firms, by Gender of Owner

Year                              Owned by women    Not owned by women
----------------------------  ------------------  --------------------
1990                                      (n=89)               (n=698)
Average                               $1,835,467            $3,400,364
                                    (+/-667,287)        (+/-1,723,579)
Distribution
Under $100,000                             12.4%                 13.5%
$100,000-$499,999                          27.0%                 24.1%
$500,000-$999,999                          18.0%                 13.5%
$1,000,000 and over                        42.7%                 49.0%
1991                                      (n=88)               (n=678)
Average                               $1,878,362            $3,568,052
                                    (+/-682,772)        (+/-1,795,146)
Distribution
Under $100,000                             14.8%                 11.9%
$100,000-$499,999                          23.9%                 23.0%
$500,000-$999,999                          19.3%                 13.6%
$1,000,000 and over                        42.0%                 51.5%
1992                                     (n=101)               (n=741)
Average                               $1,911,529            $3,848,725
                                    (+/-630,798)        (+/-1,720,538)
Distribution
Under $100,000                             16.8%                 12.4%
$100,000-$499,999                          23.8%                 23.1%
$500,000-$999,999                          16.8%                 13.8%
$1,000,000 and over                        42.6%                 50.7%
1993                                     (n=139)               (n=996)
Average                               $1,896,534            $3,190,191
                                    (+/-507,795)        (+/-1,243,116)
Distribution
Under $100,000                             12.2%                 16.8%
$100,000-$499,999                          29.5%                 24.2%
$500,000-$999,999                          15.1%                 13.3%
$1,000,000 and over                        43.2%                 45.8%
----------------------------------------------------------------------
\a Differences in averages and distributions by gender are not
statistically significant. 

                                   Table 3.31a
                     
                     Average Growth in Bonding Capacity From
                          1990 to 1993, by Size of Firm

                                                           Over $3.5     All SBA
                               Up to     $500,001-    million to SBA       small
                            $500,000  $3.5 million           maximum       firms
------------------------  ----------  ------------  ----------------  ----------
Dollar growth in largest          \c      $152,352        $1,168,330    $402,590
 bond\a                      (n=115)          (+/-      (+/-631,966)        (+/-
                                           66,655)           (n=162)    173,805)
                                           (n=348)                       (n=625)
Dollar growth in total            \c            \c        $2,191,473    $612,110
 program\a,b                 (n=133)       (n=385)    (+/-1,089,960)        (+/-
                                                             (n=169)    297,040)
                                                                         (n=687)
1993/1990 ratio for             2.33          1.94              1.63        1.93
 largest bond                   (+/-     (+/-0.26)         (+/-0.22)    (+/-0.3)
                               1.40)       (n=348)           (n=162)    (n= 625)
                             (n=115)
1993/1990 ratio for             2.09          2.26              1.55        2.05
 total program                  (+/-     (+/-1.03)         (+/-0.24)        (+/-
                               1.15)       (n=385)           (n=169)       0.62)
                             (n=133)                                    (n= 687)
--------------------------------------------------------------------------------
\a Difference between the smallest firms and the firms with revenues
over $3.5 million is statistically significant. 

\b Difference between the medium-size firms and the firms with
revenues over $3.5 million is statistically significant. 

\c This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.31b
                
                Average Growth in Bonding Capacity From
                1990 to 1993 for Firms, by Ethnicity of
                                 Owner

                                                          Not owned by
                               Owned by minority              minority
----------------------------  ------------------  --------------------
Dollar growth in largest                      \b              $421,468
 bond                                     (n=48)          (+/-188,918)
                                                               (n=572)
Dollar growth in total                        \b              $618,718
 program                                  (n=48)          (+/-318,581)
                                                               (n=634)
1993/1990 ratio for largest                 4.22                  1.75
 bond                                  (+/-3.41)             (+/-0.16)
                                          (n=48)               (n=572)
1993/1990 ratio for total                   3.56                  1.95
 program                               (+/-3.20)             (+/-0.63)
                                          (n=48)               (n=634)
----------------------------------------------------------------------
\a Differences by ethnicity are not statistically significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                              Table 3.31c
                
                Average Growth in Bonding Capacity From
                  1990 to 1993 for Firms, by Gender of
                                 Owner

                                  Owned by women    Not owned by women
----------------------------  ------------------  --------------------
Dollar growth in largest                $450,404              $400,337
 bond                               (+/-223,207)          (+/-195,594)
                                          (n=69)               (n=550)
Dollar growth in total                  $578,931              $621,689
 program                            (+/-283,895)          (+/-334,980)
                                          (n=75)               (n=606)
1993/1990 ratio for largest                 2.31                  1.76
 bond                                  (+/-0.79)             (+/-0.18)
                                          (n=69)               (n=550)
1993/1990 ratio for total                     \b                  1.64
 program                                  (n=75)             (+/-0.15)
                                                               (n=606)
----------------------------------------------------------------------
\a Differences by gender are not statistically significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                   Table 3.32a
                     
                        Distribution of Change in Bonding
                       Capacity (Largest Bond) From 1990 to
                         1993 for Firms, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                               Up to          $3.5    million to SBA       small
                            $500,000       million           maximum       firms
Distribution                 (n=115)       (n=348)           (n=162)     (n=625)
------------------------  ----------  ------------  ----------------  ----------
Decrease in largest bond       13.0%         19.3%             18.5%       17.9%
 capacity
No change in largest           54.8%         35.3%             29.6%       37.4%
 bond capacity
Increase in largest bond       32.2%         45.4%             51.9%       44.6%
 capacity
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                              Table 3.32b
                
                   Distribution of Change in Bonding
                  Capacity (Largest Bond) From 1990 to
                 1993 for Firms, by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Distribution                              (n=48)               (n=572)
----------------------------  ------------------  --------------------
Decrease in largest bond                   18.8%                 17.7%
 capacity
No change in largest bond                  25.0%                 38.3%
 capacity
Increase in largest bond                   56.3%                 44.1%
 capacity
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                              Table 3.32c
                
                   Distribution of Change in Bonding
                  Capacity (Largest Bond) From 1990 to
                   1993 for Firms, by Gender of Owner

                                  Owned by women    Not owned by women
Distribution                              (n=69)               (n=550)
----------------------------  ------------------  --------------------
Decrease in largest bond                   14.5%                 18.5%
 capacity
No change in largest bond                  31.9%                 37.8%
 capacity
Increase in largest bond                   53.6%                 43.6%
 capacity
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                   Table 3.33a
                     
                        Distribution of Change in Bonding
                      Capacity (Total Program) From 1990 to
                         1993 for Firms, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                               Up to          $3.5    million to SBA       small
                            $500,000       million           maximum       firms
Distribution                 (n=133)       (n=385)           (n=169)     (n=687)
------------------------  ----------  ------------  ----------------  ----------
Decrease in total bond         12.0%         14.3%             13.0%       13.5%
 capacity
No change in total bond        58.6%         43.1%             36.1%       44.4%
 capacity
Increase in total bond         29.3%         42.6%             50.9%       42.1%
 capacity
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                              Table 3.33b
                
                   Distribution of Change in Bonding
                 Capacity (Total Program) From 1990 to
                 1993 for Firms, by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Distribution                              (n=48)               (n=634)
----------------------------  ------------------  --------------------
Decrease in total bond                     16.7%                 13.1%
 capacity
No change in total bond                    29.2%                 45.4%
 capacity
Increase in total bond                     54.2%                 41.5%
 capacity
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                              Table 3.33c
                
                   Distribution of Change in Bonding
                 Capacity (Total Program) From 1990 to
                   1993 for Firms, by Gender of Owner

                                  Owned by women    Not owned by women
Distribution                              (n=75)               (n=606)
----------------------------  ------------------  --------------------
Decrease in total bond                     10.7%                 14.0%
 capacity
No change in total bond                    37.3%                 45.0%
 capacity
Increase in total bond                     52.0%                 40.9%
 capacity
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                   Table 3.34a
                     
                       Percentage of Firms With Preapproved
                          Bonding Line, by Size of Firm

                                       $500,001-         Over $3.5
                             Up to          $3.5    million to SBA       All SBA
                          $500,000       million           maximum   small firms
                           (n=430)       (n=770)           (n=240)     (n=1,440)
----------------------  ----------  ------------  ----------------  ------------
Had preapproved              42.6%         69.9%             82.1%         63.8%
 bonding line
--------------------------------------------------------------------------------
\a Differences by size of firm are statistically significant. 

                              Table 3.34b
                
                  Percentage of Firms With Preapproved
                  Bonding Line, by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
                                         (n=108)             (n=1,315)
----------------------------  ------------------  --------------------
Had preapproved bonding line               55.6%                 64.6%
----------------------------------------------------------------------
\a Difference by ethnicity is not statistically significant. 

                              Table 3.34c
                
                  Percentage of Firms With Preapproved
                    Bonding Line, by Gender of Owner

                                  Owned by women    Not owned by women
                                         (n=174)             (n=1,251)
----------------------------  ------------------  --------------------
Had preapproved bonding line               67.8%                 63.4%
----------------------------------------------------------------------
\a Difference by gender is not statistically significant. 

                                   Table 3.35a
                     
                       Distribution of When Firms Obtained
                     Their First Preapproved Bonding Line, by
                                   Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Type of bonding               $500,000     million           maximum       firms
experience                     (n=163)     (n=473)           (n=144)     (n=780)
------------------------  ------------  ----------  ----------------  ----------
Before ever needing a            38.0%       37.4%             38.9%       37.8%
 bond
With first approved bond         44.2%       25.4%             18.8%       28.1%
 for a specific job
After completing one or          14.1%       25.8%             24.3%       23.1%
 a few bonded jobs
After completing many             3.7%       11.4%             18.1%       11.0%
 bonded jobs
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                              Table 3.35b
                
                  Distribution of When Firms Obtained
                Their First Preapproved Bonding Line, by
                           Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Type of bonding experience                (n=56)               (n=717)
----------------------------  ------------------  --------------------
Before ever needing a bond                 28.6%                 38.6%
With first approved bond for               44.6%                 26.6%
 a specific job
After completing one or a                  12.5%                 24.0%
 few bonded jobs
After completing many bonded               14.3%                 10.7%
 jobs
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are statistically
significant. 

                              Table 3.35c
                
                  Distribution of When Firms Obtained
                Their First Preapproved Bonding Line, by
                            Gender of Owner

                                  Owned by women    Not owned by women
Type of bonding experience                (n=99)               (n=675)
----------------------------  ------------------  --------------------
Before ever needing a bond                 46.5%                 36.7%
With first approved bond for               28.3%                 27.6%
 a specific job
After completing one or a                  18.2%                 24.0%
 few bonded jobs
After completing many bonded                7.1%                 11.7%
 jobs
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                   Table 3.36a
                     
                     Size of Bonds Obtained by Firms in 1993,
                                 by Size of Firm

                                          500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Size of bond                  $500,000     million           maximum       firms
------------------------  ------------  ----------  ----------------  ----------
Average bond\a                $108,370    $460,048          $984,724    $511,564
                                  (+/-        (+/-      (+/-247,363)        (+/-
                               34,710)    418,589)           (n=189)    246,687)
                               (n=162)     (n=468)                       (n=819)
Distribution\b
Under $100,000                   67.9%       33.5%             11.1%       35.2%
$100,000-$499,999                27.2%       49.1%             36.0%       41.8%
$500,000-$999,999                 3.7%       12.8%             21.7%       13.1%
$1,000,000 and over                 \c        4.5%             31.2%       10.0%
Average size of largest       $228,043    $794,695        $2,607,974
 bond\a,d 7                 (+/-1,862)        (+/-       (+/-24,347)  $1,033,733
                             (n=268) 4     77,329)         (n=231) 2        (+/-
                                         (n=618) 5                       90,030)
                                                                       (n=1,117)
Distribution\b
Under $100,000                   51.9%       20.9%              4.8%       25.0%
$100,000-$499,999                38.4%       42.2%             15.6%       35.8%
$500,000-$999,999                 4.5%       19.9%             16.0%       15.4%
$1,000,000 and over               5.2%       17.0%             63.6%       23.8%
--------------------------------------------------------------------------------
\a Difference between the smallest firms and the firms with average
revenues over $3.5 million is statistically significant. 

\b Differences in distribution by size of firm are statistically
significant. 

\c This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

\d Difference between the medium-size firms and the firms with
average revenues over $3.5 million is statistically significant. 

                              Table 3.36b
                
                Size of Bond Obtained by Firms in 1993,
                         by Ethnicity of Owner

                                                          Not owned by
Size of bond                   Owned by minority              minority
----------------------------  ------------------  --------------------
Average bond                            $377,388              $525,161
                                    (+/-134,496)          (+/-267,046)
                                          (n=57)               (n=756)
Distribution
Under $100,000                             31.6%                 35.2%
$100,000-$499,999                          36.8%                 42.2%
$500,000-$999,999                          21.1%                 12.6%
$1,000,000 and over                        10.5%                 10.1%
Average size of largest bond            $897,560            $1,047,655
                                    (+/-253,670)          (+/-314,174)
                                          (n=79)             (n=1,029)
Distribution
Under $100,000                             19.0%                 25.5%
$100,000-$499,999                          35.4%                 35.7%
$500,000-$999,999                          13.9%                 15.5%
$1,000,000 and over                        31.6%                 23.3%
----------------------------------------------------------------------
\a Differences in averages and distributions by ethnicity are not
statistically significant. 

                              Table 3.36c
                
                Size of Bond Obtained by Firms in 1993,
                           by Gender of Owner

Size of bond                      Owned by women    Not owned by women
----------------------------  ------------------  --------------------
Average bond                            $259,709              $548,316
                                     (+/-86,003)          (+/-280,689)
                                          (n=95)               (n=719)
Distribution
Under $100,000                             38.9%                 34.2%
$100,000-$499,999                          47.4%                 41.3%
$500,000-$999,999                           6.3%                 14.0%
$1,000,000 and over                         7.4%                 10.4%
Average size of largest bond            $708,421            $1,085,086
                                    (+/-202,105)          (+/-332,904)
                                         (n=139)               (n=969)
Distribution
Under $100,000                             20.9%                 25.4%
$100,000-$499,999                          44.6%                 34.5%
$500,000-$999,999                          15.1%                 15.6%
$1,000,000 and over                        19.4%                 24.6%
----------------------------------------------------------------------
\a Differences in averages and distributions by gender are not
statistically significant. 

                                   Table 3.37a
                     
                      Average Financial Status of Firms That
                      Had Financial Statements on File With
                        Dun & Bradstreet, by Size of Firm

                                         $500,000-         Over $3.5     All SBA
Indicator of financial           Up to        $3.5    million to SBA       small
status in 1993                $500,000     million           maximum       firms
------------------------  ------------  ----------  ----------------  ----------
Indicator of financial                   $500,001-         Over $3.5     All SBA
 status in 1993                  Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Net worth\b,c,d               $188,891    $362,888        $1,185,954    $527,722
                                  (+/-        (+/-      (+/-284,122)        (+/-
                               70,075)     67,107)            (n=91)     85,861)
                                (n=61)     (n=238)                       (n=390)
Working capital\b,c,d          $96,891    $201,932          $701,041    $301,961
                                  (+/-        (+/-      (+/-161,968)        (+/-
                               51,377)     31,124)            (n=91)     47,885)
                                (n=61)     (n=238)                       (n=390)
Age of accounts                   59.3        60.5              59.9        60.2
 receivable (days)           (+/-16.8)    (+/-8.2)          (+/-6.9)    (+/-5.8)
                                (n=42)     (n=174)            (n=71)     (n=287)
Quick ratio\d                      3.3         3.1               1.6         2.8
                              (+/-1.7)    (+/-1.1)          (+/-0.3)    (+/-0.7)
                                (n=59)     (n=232)            (n=90)     (n=381)
Current ratio\c,d                  5.1         4.0               2.0         3.7
                              (+/-2.5)    (+/-1.2)          (+/-0.3)    (+/-0.8)
                                (n=59)     (n=236)            (n=91)     (n=386)
--------------------------------------------------------------------------------
\a The number of survey respondents in each group from left to right
is 447, 792, 245, and 1,484.  Financial data were not available for
the majority of the firms.  The fewest data--9.4% of the responding
firms--were available for the smallest firms' age of accounts
receivable. 

\b Difference between the smallest firms and the medium-size firms is
statistically significant. 

\c Difference between the smallest firms and the firms with average
revenues over $3.5 million is statistically significant. 

\d Difference between the medium-size firms and the firms with
average revenues over $3.5 million is statistically significant. 

Source:  GAO's analysis of Dun & Bradstreet's data. 

                              Table 3.37b
                
                 Average Financial Status of Firms That
                 Had Financial Statements on File With
                Dun & Bradstreet, by Ethnicity of Owner

Indicator of financial                  Owned by          Not owned by
status in 1993                        minorities            minorities
----------------------------  ------------------  --------------------
Net worth                               $431,593              $538,478
                                    (+/-190,255)           (+/-91,496)
                                          (n=22)               (n=363)
Working capital                         $279,811              $305,895
                                    (+/-165,271)           (+/-50,554)
                                          (n=22)               (n=363)
Age of accounts receivable                  60.7                  60.1
                                       (+/-17.0)              (+/-6.1)
                                          (n=17)               (n=267)
Quick ratio                                  1.5                   2.8
                                        (+/-0.4)              (+/-0.8)
                                          (n=21)               (n=355)
Current ratio                                1.8                  3.8%
                                        (+/-0.4)              (+/-0.9)
                                          (n=21)               (n=360)
----------------------------------------------------------------------
\a The number of survey respondents in each group is 109 for the
firms owned by minorities and 1,354 for the firms not owned by
minorities.  Financial data were not available for the majority of
the firms.  The fewest data--15.6% of the responding firms--were
available for the age of accounts receivable for the firms owned by
minorities. 

\b Differences by ethnicity are not statistically significant. 

Source:  GAO's analysis of Dun & Bradstreet's data. 

                              Table 3.37c
                
                 Average Financial Status of Firms That
                 Had Financial Statements on File With
                  Dun & Bradstreet, by Gender of Owner

Indicator of financial
status in 1993                    Owned by women    Not owned by women
----------------------------  ------------------  --------------------
Net worth\b                             $397,244              $549,298
                                    (+/-110,775)           (+/-97,398)
                                          (n=48)               (n=339)
Working capital\b                       $261,579              $309,296
                                    (+/-108,120)           (+/-53,020)
                                          (n=48)               (n=339)
Age of accounts receivable\c                76.0                  57.9
                                       (+/-15.0)              (+/-6.2)
                                          (n=38)               (n=248)
Quick ratio\b                                3.1                   2.7
                                        (+/-2.4)              (+/-0.8)
                                          (n=48)               (n=330)
Current ratio\b                              3.8                   3.7
                                        (+/-2.6)              (+/-0.9)
                                          (n=48)               (n=335)
----------------------------------------------------------------------
\a The number of survey respondents in each group is 177 for the
firms owned by women and 1,287 for the firms not owned by women. 
Financial data were not available for the majority of the firms.  The
fewest data--19.3% of responding firms--were available for the age of
accounts receivable of the firms not owned by women. 

\b Difference by gender is not statistically significant. 

\c Difference by gender is statistically significant. 

Source:  GAO's analysis of Dun & Bradstreet's data. 

CHARACTERISTICS OF FIRMS THAT HAD
NOT OBTAINED BONDS
============================================================ Chapter 4

Fifty-seven percent of the firms that responded to our survey had
never obtained a surety bond or had a preapproved bonding line.  We
estimate that in the universe of firms in our study, the percentage
is higher than this, but no higher than 77 percent. 

The tables in this section provide estimates about at most the
157,306 (+/- 5,146) firms represented by the respondents to our
survey that had never provided a bond or had a bonding line.  The
results in particular tables can be generalized only to the firms
that said they had never obtained a bond or had a bonding line and
that provided the information discussed in the table.  The
approximate number of firms can be estimated by multiplying the
number of firms responding to the question (n) by the expansion
factor, 683,198/12,000.  In the tables we have provided the
statistics, the sampling errors for our estimates other than
percentages, and the sample sizes to enable the reader to calculate
sampling errors for our estimates of percentages using the formula
provided in section 1.  In some tables that present distributions,
the columns do not add to 100 percent because of rounding. 

                               Table 4.1
                
                Characteristics of Firms With No Bonding
                               Experience

                                  Number providing
Characteristic                         information           Statistic
------------------------------  ------------------  ------------------
Gender                                   (n=2,586)
Owned by women                                                    7.5%
Not owned by women                                               92.5%
Ethnicity                                (n=2,477)
Owned by minorities                                               6.5%
Not owned by minorities                                          93.5%
Size                                     (n=2,763)
Average revenues                                              $391,129
                                                           (+/-24,199)
Up to $500,000                                                   77.8%
$500,001-$3.5 million                                            21.6%
Over $3.5 million to SBA                                          0.6%
 maximum
Years in construction                    (n=2,662)                15.3
                                                              (+/-0.4)
SIC                                      (n=2,756)
Building construction                                             9.1%
Heavy construction                                                4.6%
Special trade construction                                       86.3%
----------------------------------------------------------------------

                                    Table 4.2a
                     
                      Firms' Average Years of Experience in
                          Construction, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Experience                   (n=2,059)     (n=588)            (n=15)   (n=2,662)
------------------------  ------------  ----------  ----------------  ----------
Average number of years          15.13       15.97             21.33       15.35
 in construction             (+/-0.48)   (+/-1.01)        (+/-12.15)   (+/-0.44)
--------------------------------------------------------------------------------
\a Differences by size of firm are not statistically significant. 

                               Table 4.2b
                
                 Firms' Average Years of Experience in
                  Construction, by Ethnicity of Owner

                                                          Not owned by
                               Owned by minority              minority
Experience                               (n=158)             (n=2,278)
----------------------------  ------------------  --------------------
Average number of years in                 13.33                 15.34
 construction                          (+/-1.43)             (+/-0.48)
----------------------------------------------------------------------
\a Difference by ethnicity is statistically significant. 

                               Table 4.2c
                
                     Average Years of Experience in
                  Construction of Firms, by Gender of
                                 Owner

                                  Owned by women    Not owned by women
Experience                               (n=192)             (n=2,350)
----------------------------  ------------------  --------------------
Average number of years in                 13.09                 15.44
 construction                          (+/-1.86)             (+/-0.46)
----------------------------------------------------------------------
\a Difference by gender is statistically significant. 

                                    Table 4.3a
                     
                     Percentage of Firms in Selected Standard
                      Industrial Classifications, by Size of
                                       Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Standard industrial           $500,000     million           maximum       firms
classification               (n=2,143)    (n= 598)            (n=15)   (n=2,756)
------------------------  ------------  ----------  ----------------  ----------
Building construction             7.0%       15.4%             60.0%        9.1%
Heavy construction                4.4%        5.4%                0%        4.6%
 contractors
Special trade                    88.6%       79.3%             40.0%       86.3%
 contractors
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

                               Table 4.3b
                
                Percentage of Firms in Selected Standard
                Industrial Classifications, by Ethnicity
                                of Owner

                                                          Not owned by
Standard industrial            Owned by minority              minority
classification                           (n=161)             (n=2,311)
----------------------------  ------------------  --------------------
Building construction                      12.4%                  9.2%
Heavy construction                          3.7%                  4.6%
 contractors
Special trade contractors                  83.9%                 86.2%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                               Table 4.3c
                
                Percentage of Firms in Selected Standard
                Industrial Classifications, by Gender of
                                 Owner

Standard industrial               Owned by women    Not owned by women
classification                           (n=194)             (n=2,385)
----------------------------  ------------------  --------------------
Building construction                       6.7%                  9.4%
Heavy construction                         11.3%                  4.0%
 contractors
Special trade contractors                  82.0%                 86.6%
----------------------------------------------------------------------
\a Differences in distribution by gender are statistically
significant. 

                                    Table 4.4a
                     
                       Distribution of Firms' Work in 1993
                        Performed Directly for Owners and
                     Through Subcontracting, by Size of Firm

                                                                             All
                                                                             SBA
                                             $500,001-         Over $3.5   small
                                     Up to        $3.5    million to SBA   firms
                                  $500,000     million           maximum  (n=2,5
Type of work                     (n=1,987)     (n=564)            (n=15)     66)
----------------------------  ------------  ----------  ----------------  ------
More direct work for owner           38.6%       38.1%             46.7%   38.5%
More subcontracting                  55.0%       55.7%             53.3%   55.1%
Equal amounts of direct work          6.4%        6.2%                0%    6.4%
 and subcontracting
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are not statistically
significant. 

                               Table 4.4b
                
                  Distribution of Firms' Work in 1993
                   Performed Directly for Owners and
                Through Subcontracting, by Ethnicity of
                                 Owner

                                                          Not owned by
                               Owned by minority              minority
Type of work                             (n=154)             (n=2,203)
----------------------------  ------------------  --------------------
More direct work for owner                 43.5%                 38.4%
More subcontracting                        52.6%                 55.2%
Equal amounts of direct work
 and subcontracting                         3.9%                  6.4%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

                               Table 4.4c
                
                  Distribution of Firms' Work in 1993
                   Performed Directly for Owners and
                  Through Subcontracting, by Gender of
                                 Owner

                              Owned by women     Not owned by women
Type of work                         (n=184)         (n=2,278)
------------------------  ------------------  ------------------------
More direct work for                   35.9%           38.8%
 owner
More subcontracting                    59.8%           54.7%
Equal amounts of direct
 work and subcontracting                4.3%            6.5%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

                                    Table 4.5a
                     
                      Percentage of Firms Reporting Various
                      Reasons for Not Obtaining Bonds Since
                              1990, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
                              $500,000     million           maximum       firms
Reason                       (n=2,016)     (n=574)            (n=14)   (n=2,604)
------------------------  ------------  ----------  ----------------  ----------
Not asked to provide             83.2%       74.9%             57.1%       81.2%
 bonds since 1990 or
 does not bid on bonded
 jobs\a
Surety company's                 16.3%       23.7%             35.7%       18.0%
 requirements to get
 bonds were too
 burdensome for firm\a
Financial commitment             15.6%       20.4%             28.6%       16.7%
 required to get bonds
 is more than firm has
 wanted\a
Firm could not afford            12.7%       16.4%             28.6%       13.6%
 the cost of preparing
 financial information
 for the surety
 company\a
Believed the firm would          11.2%       15.9%             28.6%       12.3%
 not be able to get
 bonds so did not ask
 for them\a
Fees charged by surety           11.1%       12.9%                \b       11.4%
 companies make it
 unprofitable for firm
 to do bonded work
Use or have used cash             3.7%        8.7%                \b        4.9%
 instead of bonds\a
Perform work in                   7.7%       11.0%                \b        8.4%
 partnership or as a
 joint venture with a
 firm that is/was
 bonded\a
Requests for bonds were           3.2%        3.7%                \b        3.3%
 denied
Use or have used letter           1.6%        2.6%                \b        1.8%
 from surety company
 saying firm is bondable
Other reasons                     5.4%        5.2%                0%        5.3%
--------------------------------------------------------------------------------
\a Differences by size of firm are statistically significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                    Table 4.5b
                     
                      Percentage of Firms Reporting Various
                      Reasons for Not Obtaining Bonds Since
                           1990, by Ethnicity of Owner

                                                                    Not owned by
                                         Owned by minority              minority
Reason                                             (n=157)             (n=2,244)
--------------------------------------  ------------------  --------------------
Not asked to provide bonds since 1990                73.2%                 81.7%
 or does not bid on bonded jobs\a
Surety company's requirements to get                 17.8%                 18.1%
 bonds were too burdensome for firm
Financial commitment required to get                 17.8%                 16.7%
 bonds is more than firm has wanted
Firm could not afford the cost of                    16.6%                 13.5%
 preparing financial information for
 the surety company
Believed the firm would not be able to               17.8%                 11.6%
 get bonds so did not ask for them\a
Fees charged by surety companies make                12.1%                 11.4%
 it unprofitable for firm to do bonded
 work
Use or have used cash instead of                      9.6%                  4.8%
 bonds\a
Perform work in partnership or as a                   8.9%                  8.5%
 joint venture with a firm that is/
 was bonded
Requests for bonds were denied                        6.4%                  3.3%
Use or have used letter from surety                   2.5%                  1.9%
 company saying firm is bondable
Other reasons                                         7.6%                  5.2%
--------------------------------------------------------------------------------
\a Difference by ethnicity is statistically significant. 

                                    Table 4.5c
                     
                      Percentage of Firms Reporting Various
                      Reasons for Not Obtaining Bonds Since
                             1900, by Gender of Owner

                                            Owned by women    Not owned by women
Reason                                             (n=187)             (n=2,321)
--------------------------------------  ------------------  --------------------
Not asked to provide bonds since 1990                70.6%                 82.4%
 or does not bid on bonded jobs\a
Surety company's requirements to get                 23.0%                 17.7%
 bonds were too burdensome for firm
Financial commitment required to get                 20.9%                 16.2%
 bonds is more than firm has wanted
Firm could not afford the cost of                    16.0%                 13.5%
 preparing financial information for
 the surety company
Believed the firm would not be able to               18.2%                 11.8%
 get bonds so did not ask for them\a
Fees charged by surety companies make                13.9%                 11.2%
 it unprofitable for firm to do bonded
 work
Use or have used cash instead of bonds                3.2%                  5.0%
Perform work in partnership or a as                  13.4%                  8.1%
 joint venture with a firm that is/
 was bonded\a
Requests for bonds were denied                        3.7%                  3.3%
Use or have used letter from surety                     \b                  1.9%
 company saying firm is bondable
Other reasons                                         6.4%                  5.0%
--------------------------------------------------------------------------------
\a Difference by gender is statistically significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                    Table 4.6a
                     
                           Percentage of Firms That Had
                      Requirements Explained in Advance the
                       First Time They Asked for a Bond, by
                                   Size of Firm

Extent to which                          $500,001-         Over $3.5     All SBA
information was given by         Up to        $3.5    million to SBA       small
agents, brokers, or           $500,000     million           maximum       firms
surety companies             (n=1,993)     (n=563)            (n=15)   (n=2,571)
------------------------  ------------  ----------  ----------------  ----------
Little or no extent               4.4%        6.4%              0.0%        4.8%
Some extent                       4.9%        7.1%                \b        5.4%
Moderate extent                   4.3%        7.6%             26.7%        5.2%
Great extent                      2.9%        6.4%                \b        3.7%
Very great extent                 0.9%        1.2%                \b        1.0%
Did not remember                  2.9%        2.0%              0.0%        2.7%
Never asked for a bond           79.7%       69.3%             53.3%       77.3%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 4.6b
                
                      Percentage of Firms That Had
                 Requirements Explained in Advance the
                  First Time They Asked for a Bond, by
                           Ethnicity of Owner

Extent to which information                               Not owned by
was given by agents,           Owned by minority              minority
brokers, or surety companies             (n=156)             (n=2,246)
----------------------------  ------------------  --------------------
Little or no extent                         6.4%                  4.6%
Some extent                                 4.5%                  5.3%
Moderate extent                             3.8%                  5.2%
Great extent                                7.1%                  3.5%
Very great extent                             \b                  0.9%
Did not remember                            2.6%                  2.5%
Never asked for a bond                     74.4%                 77.9%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 4.6c
                
                      Percentage of Firms That Had
                 Requirements Explained in Advance the
                  First Time They Asked for a Bond, by
                            Gender of Owner

Extent to which information
was given by agents,              Owned by women    Not owned by women
brokers, or surety companies             (n=189)             (n=2,319)
----------------------------  ------------------  --------------------
Little or no extent                         5.8%                  4.6%
Some extent                                 4.8%                  5.3%
Moderate extent                             6.3%                  4.9%
Great extent                                6.9%                  3.3%
Very great extent                             \b                  0.9%
Did not remember                              \b                  2.6%
Never asked for a bond                     74.1%                 78.4%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                                    Table 4.7a
                     
                       Frequency With Which Firms That Had
                     Asked for a Bond Have Been Denied Bonds
                           Since 1990, by Size of Firm

                                         $500,001-         Over $3.5     All SBA
                                 Up to        $3.5    million to SBA       small
Number of denials since       $500,000     million           maximum       firms
1990                           (n=251)     (n=105)             (n=3)     (n=359)
------------------------  ------------  ----------  ----------------  ----------
None                             78.9%       73.3%             66.7%       77.2%
1-5                              17.1%       25.7%              0.0%       19.5%
6-12                              2.4%        0.0%                \b        1.9%
More than 12                      1.6%          \b              0.0%        1.4%
--------------------------------------------------------------------------------
\a Differences in distribution by size of firm are statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 4.7b
                
                  Frequency With Which Firms That Had
                Asked for a Bond Have Been Denied Bonds
                   Since 1990, by Ethnicity of Owner

Number of denials         Owned by minority     Not owned by minority
since 1990                      (n=25)                 (n=319)
----------------------  ----------------------  ----------------------
None                            72.0%                   77.7%
1-5                             20.0%                   19.4%
6-12                              \b                     1.3%
More than 12                     0.0%                    1.6%
----------------------------------------------------------------------
\a Differences in distribution by ethnicity are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

                               Table 4.7c
                
                  Frequency With Which Firms That Had
                Asked for a Bond Have Been Denied Bonds
                     Since 1990, by Gender of Owner

                                  Owned by women    Not owned by women
Number of denials since 1990              (n=32)               (n=319)
----------------------------  ------------------  --------------------
None                                       65.6%                 78.4%
1-5                                        28.1%                 18.5%
6-12                                          \b                  1.6%
More than 12                                0.0%                  1.6%
----------------------------------------------------------------------
\a Differences in distribution by gender are not statistically
significant. 

\b This estimate is omitted because the sampling error is larger than
the estimate, leaving no confidence in the estimate. 

(See figure in printed edition.)Appendix I
NATIONAL SURVEY OF CONSTRUCTION
COMPANIES' EXPERIENCES GETTING
BID, PERFORMANCE AND PAYMENT BONDS
============================================================ Chapter 4

(See figure in printed edition.)

(See figure in printed edition.)

(See figure in printed edition.)

(See figure in printed edition.)

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