### Question
How does GUARANTEES define bid bond?


### Answer
Under *15 U.S.C. § 694a*, **bid bond** is defined as:

> a bond conditioned upon the bidder on a contract entering into the contract, if he receives the award thereof, and furnishing the prescribed payment bond and performance bond

#### Citation:
  - *15 U.S.C. § 694a*
  - Heading: **CHAPTER 14B-SMALL BUSINESS INVESTMENT PROGRAM > SUBCHAPTER IV&ndash;A-GUARANTEES > Part B-Surety Bond Guarantees**

