# Bonds for lenders How surety bonds attach to a lending license, why the amount varies, and what changes when you add states. ## What you will learn - How lending bond amounts are typically set - Why adding states stacks the bond portfolio - What underwriting on a lending principal usually looks at ## Bonds attach to the license, not the company Each lending license generally carries its own [[term:surety-bond]] requirement, written to that state's statutory form. The face amount is set by the state, often as a flat number, sometimes as a tier based on volume. A multi-state lender carries a portfolio of bonds, not a single master bond. ## Why the portfolio compounds Every new state added to the footprint typically adds a bond, often with its own renewal date that does not line up with the existing portfolio. The administrative load of tracking and renewing bonds is one of the first things a growing lender outsources. ## Underwriting on the principal Surety underwriting on a lending principal looks at the entity's financials, the credit of the [[term:control-person]] list, and the lending product itself. Higher-risk products and thinner balance sheets tend to translate into higher premiums on the same face amount. Use the estimator below to size the portfolio quickly: pick the lending bond type, the states you operate in, and a credit range to see typical annual premiums. [[tool:bond-cost-estimator]]