The Federal Bonding program has been around since the 1960's. It was set up to help new employees over a final hurdle when Employers indicate they would hire a person if they were bonded, and would not hire them if they were not bonded.

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   Federal funds formerly paid for the full cost of the program, but now the states must pick up the the full cost. The Federal Bonding Program may be unavailable if Iowa does not have funds to purchase the minimum block of 25 bonds.

Updated Federal Bonding Notice

Summary of the Federal Bonding Program

1. Self-employment is not covered.
   

2. Any full time (30 hours) legal job where Federal taxes are automatically deducted from the pay is covered by the program. The person must meet the legal age for doing the job.
   

3. Any person who is "At Risk", i.e. something in their past that would cause an employer to question their honesty, is covered. It would not be appropriate to bond employees without some perceived "Risk" factor.
   

4. Any employer who will hire someone if they are bonded, and will not hire them if they are not bonded is covered.
   

5. The bond is issued to the employer and valued at $5,000 for 6 months. The bond is a "dishonesty" bond, not a bond to cover damage because of inability to do a job or failure to follow instructions. After 6 months without any claim, the bonding company will sell the employer a commercial bond for that individual at regular commercial rates.