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SNAP retailer bonds.
Re-authorized after a sanction. From $100.

When a retailer is re-authorized for SNAP after a sanction, USDA’s Food & Nutrition Service can require a collateral bond under 7 CFR §278.1(b)(3). The amount tracks your redemption history; the premium is 2% of the bond amount, with a $100 minimum — enter your figure and your exact price appears at the application.

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Required by USDA FNS of a retailer re-authorized for SNAP after a disqualification or penalty
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Amount is the greater of $1,000 or 10% of average monthly redemptions under 7 CFR §278.1(b)(3)
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A quick soft credit check may apply — never a hard inquiry, no impact on your score
From $100your exact price at application2% rate$100 minimumSoft pullnever affects your score
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
How it works

Three steps. One sitting.

Your SNAP re-authorization is waiting on this bond. Here is the whole process:

TODAY · ONLINE

Apply once, online

Business details, the bond amount FNS set, and an effective date. The only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

SAME DAY

File with USDA FNS

Receive the executed collateral bond ready to submit with your SNAP retailer application. The bond is valid for five years when re-entering the program. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the SNAP collateral bond does

SNAP — the Supplemental Nutrition Assistance Program — replaced the old food stamp program; USDA’s Food & Nutrition Service authorizes the retailers that accept it. If a retailer has been disqualified or paid a civil money penalty and is later re-authorized, 7 CFR §278.1(b)(3) directs FNS to require a collateral bond or irrevocable letter of credit.

The face amount is the greater of $1,000 or 10% of average monthly SNAP redemptions for the twelve months before the most recent sanction, and the bond must stay valid for five years from re-entry into the program.

It protects the program: FNS can collect an established claim against a previously sanctioned firm through forfeiture of the collateral bond. It is not insurance for you — if the surety pays, you repay the surety.

7 CFR §278.1(b)(3)Under 7 CFR §278.1(b)(3), USDA FNS requires a previously sanctioned firm re-applying to SNAP to post a collateral bond or irrevocable letter of credit with a face value equal to the greater of $1,000 or 10% of average monthly redemptions for the prior twelve months, valid for five years. Confirm the amount on your FNS notice.

You need this bond if you are

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A retailer re-authorized for SNAP after a disqualification of more than six months
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A firm that paid a civil money penalty in lieu of a disqualification period
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A previously sanctioned retailer that has incurred a subsequent sanction
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A grocer or market FNS has told to post collateral before re-authorization

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →
FAQ

Common questions.

How much is the SNAP collateral bond?The premium is 2% of the bond amount, with a $100 minimum. The bond amount is set by FNS — the greater of $1,000 or 10% of your average monthly SNAP redemptions for the twelve months before your most recent sanction. Enter that figure and your exact price appears at the application.
Is SNAP the same as food stamps?Yes — SNAP is the current name of the federal food stamp program. The collateral bond rule (7 CFR §278.1(b)(3)) is the same; we keep both pages so you can land on whichever term your FNS paperwork uses.
Why am I being asked for a bond?Because your firm was previously sanctioned. FNS requires a collateral bond or irrevocable letter of credit before re-authorizing a firm that was disqualified, paid a civil money penalty, or incurred a subsequent sanction.
How long does it have to stay in place?When re-entering the program, the collateral bond must be valid for five years. We can write a single 6-year term and track the renewal so it never lapses while FNS still requires it.
Is there a credit check?A quick soft credit check may apply, which never affects your score — it’s never a hard inquiry. It informs approval only — price is set by the bond amount, at 2% of the bond amount ($100 minimum), not by a credit tier.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
Related bonds

Other Federal bonds.

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USDA Food & Nutrition Service collateral bond for a re-entering SNAP firm. 2% of the bond amount, $100 minimum.
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The fixed $1,000 FNS collateral bond floor. $100 flat.
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PACA License Bond
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Re-enter SNAP with one document.

From $100, short application, bond issued when you pay. Free until issued.

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Your premiumfrom $100
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