CACFP Performance Bond

To calculate the cost involved for your organization, you must first know the total bond amount required. The total amount refers to your maximum liability under the bond’s term and is calculated using the following formula:

(Total Enrollment) x (Current Free Reimbursement Rate for Meal Type) x 90.

Total enrollment refers to your anticipated enrollment and the bond’s amount can be adjusted to go up or down to reflect any changes in your enrollment and reimbursement. You can also request to be relieved of the CACFP bond requirement, if you can show that your organization has “accumulated three years of successful administrative and financial history within the preceding seven years by submitting a written request to TDA.”

Calculating Your Premium

Once you have contacted the Department of Agriculture and have clarified your total bond amount, you can get a rough estimate of your yearly premium cost. If you have good credit, the cost can be as little as 1%, but it can go up to 10% or sometimes more if your credit score is compromised.

Other factors, such as financial strength and industry experience, can also be considered. Be sure to check out our “What Does a Surety Bond Cost”? page for more information.

Getting bonded with bad credit is possible in 99% of cases, the only difference being the yearly premium. Since sureties consider your credit score and credit report as a way to measure your likelihood of triggering a claim, they try to offset the risk by charging a higher premium.

However, even if you have a high premium, there is additional information you can submit to influence the surety’s decision. That includes financial statements, a resume with your experience, and others.

Be sure to check out our page on bad credit surety bonds for more information.

Typically, it takes us between 24 and 48 hours to process your application and get your bond signed. We will mail you the original bond form and send you digital copies via email upon request.

If at any time during your application you are experiencing difficulties, we’re here to help. Simply call us at (877)-514-5146!

Keep in mind that CACFP performance bonds need to be renewed annually. Choose Lance Surety Bonds and we’ll make sure you never forget your deadlines by sending renewal reminders ahead of time.