The Small Business Administration (SBA) is launching a web-based processing system for surety bond companies affiliated with the government agency.

"This enhancement is a collaborative effort between the surety industry and SBA resulting in improved efficiency, reduction in cost to Sureties and creating an error free environment," Peter Gibbs, deputy director for the Office of Surety Guarantees, said in a statement.

The new system, announced today by the SBA’s Office of Surety Guarantees, will eliminate the need for overnight shipments by surety companies, along with paper handling, filing and storage costs for both those companies and the SBA.

Previously, claims and other documents had to be mailed to the Office of Surety Guarantees and manually processed, incurring higher costs and longer processing times. The SBA hopes the new electronic method will substantially increase its efficiency and reduce claims cycle time.

The system was tested successfully with two surety companies and will be made available to all surety companies by Oct. 22.