Credit tightening and upcoming regulatory changes in the banking industry are creating an environment where contractor lines of credit may see a pullback. With liquidity an important factor in qualifying for a surety bond, the health of the banking industry is crucial. Recently another bank – the Heartland Tri-State Bank of Elkhart, Kansas – failed, raising concerns once again over the impact of bank closures on contractors, their access to their deposits, and the effect of liquidity constraints on fulfilling payroll, project and surety bond requirements.
