FNS retailer collateral bonds.
Re-entering SNAP. From $100.

When a firm re-enters 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 firm re-entering SNAP after a disqualification or civil money 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

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How it works

Apply to filed in 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.

WITHIN 48 HOURS

Reviewed & approved

Most clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

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 FNS collateral bond actually does

A retail food store or wholesale food concern must be authorized by USDA’s Food & Nutrition Service to accept SNAP benefits. If a firm has been disqualified or paid a civil money penalty and later re-applies, 7 CFR §278.1(b)(3) directs FNS to require a collateral bond or irrevocable letter of credit as a condition of re-authorization.

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

The bond protects the program: if FNS establishes a claim against a previously sanctioned firm, it can collect through total or partial 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 firm re-applying after a withdrawal, disqualification of more than six months, or a civil money penalty in lieu thereof — or a previously sanctioned firm incurring a subsequent sanction — to post a collateral bond or irrevocable letter of credit with a face value equal to the greater of $1,000 or 10% of the firm’s average monthly SNAP 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-applying to 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 firm that has incurred a subsequent sanction

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A grocer, convenience store, 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 typically issued within 1–2 business days.

Start the application →

FAQ

Common questions.

How much is the FNS 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.

Why am I being asked for a collateral bond?Because your firm was previously sanctioned. Under 7 CFR §278.1(b)(3), 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 multi-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.

Is this the same as the $1,000 food stamps bond?The $1,000 figure is the statutory floor for this collateral bond. If your required amount is exactly $1,000, our fixed FNS Food Stamps ($1,000) page is the simplest path; if FNS set a higher amount, use this page and enter it.

Related bonds

Other Federal bonds.

Re-enter SNAP with one document.

From $100, short application, e-signed bond in 1–2 business days. Free until issued.

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Your premiumfrom $100

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