Delaware Private Business or Trade School Bond Overview
- Purpose: To protect the contractual rights of students and prepaid tuition funds
- Who Needs It: Private career or trade school owners in Delaware
- Regulating Body: The Delaware Department of Education
- Bond Amount: $25,000–$250,000, based on annual revenue
- Minimum Price: 0.75% of the bond amount; credit-based
What Is a Delaware Private Business or Trade School Bond?
A Delaware private trade or business school bond is a financial guarantee that protects students from losing money if a school doesn’t fulfill student contracts.
For example, if an electrician trade school collects tuition then goes out of business before providing classes, the surety bond ensures those students will get their money back.
Who Needs a Delaware Private School Bond?
If you offer specialized skill training, business classes or trade-specific programs, you likely need this bond. Delaware defines private business and trade schools as any private institutions offering business or trade courses that are run by an owner, partnership or corporation. This includes for-profit and nonprofit schools.
Filing a surety bond is a prerequisite for receiving a Certificate of Approval to offer trade and business courses. This includes schools for automotive repair, coding, cosmetology, culinary, real estate and other occupations.
Bond Coverage Requirements for Delaware Private Career Schools
Your private business or trade school bond amount must equal the maximum gross prepaid tuition anticipated for students in the year that you request your Certificate of Approval. This includes in-state and out-of-state students.
There are two exceptions to this rule. You only need the minimum $25,000 bond if you meet one of the following criteria:
- The school only solicits in-state students and receives no revenues for services provided in DE
- The school receives no direct revenue from students or state or federal student grants.
These requirements are outlined in more detail in 14 Del.C. §8505(b).
How Much Do Private Trade School Bonds Cost?
Delaware business and trade school bond rates start at 0.75% of the bond amount. For example, qualified applicants could pay as low as $188 for the minimum $25,000 coverage.
Exact rates vary based on the bond amount and credit score of owners. Apply for your personalized quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
This type of surety bond creates a legally-binding contract between these three parties:
- Principal: The private school owner(s) filing the bond
- Obligee: The Delaware Department of Education
- Surety: The issuing surety provider
If the school does not fulfill its contracts, tuition payers can file bond claims. The surety will pay claims to harmed parties up to the full private school bond amount. As the principal, you must then reimburse the surety for damages paid out.
How Do I Get a Private Business or Trade School Bond in Delaware?
First, confirm the bond coverage you need. Then, follow these quick steps:
- Apply for a quote.
- Provide any financial documents, if requested.
- Receive your personalized rate.
- Pay for the bond.
We’ll email you the bond right away. Sign and file it with the Department of Education as instructed.
How Fast Can I Get My Bond?
We deliver private school bond quotes within one business day or less! Once you complete the purchase, you’ll receive your official bond form via email in minutes.
How Do I Renew My Bond?
These bonds are “continuous” which means you can renew them year over year rather than filing a new bond form. Simply confirm if your coverage amount is still correct and pay the renewal invoice to extend your coverage for another year.
If you’re a current client, we’ll email and text helpful reminders before your one-year bond term expires.
Can I Make Changes to My Bond?
If the bond amount needs to be updated or other information, email [email protected] for help. Only the original surety provider can make changes to active trade school bonds.
How to Open a Career School in Delaware
The Department of Education manages certificate of approval applications for Delaware private business or trade schools. You’ll need to prepare the following materials and attach them all in a packet:
- Notarized application form listing the location, institution type and certificate holder
- Copies of any current licenses or certifications
- Information about the administrators and points of contact
- Notarized statement of revenue
- Disposition of student records if the school is located in Delaware
- Current school catalog
- Organization chart
- All instructional staff information, including qualifications and courses taught
- List of major equipment made available
- Labeled drawing of the school’s physical facilities
- Copies of advertisements made on behalf of the school
- Copy of the student application and enrollment agreement
- Enrollment figures
- Copy of the school’s refund policies and complaint procedures
- Surety bond in the proper amount
- Proof of corporate status, if applicable
- Copy of the fire marshal’s inspection form
- Lease agreement or ownership deed
- Character references
- $100 check or money order made payable to the State of Delaware, Department of Education
Submit the application packet to this address:
Private Business and Trade Schools
Delaware Department of Education
35 Commerce Way, Suite 1
Dover, DE 19904
As the final step, the Department of Education Site Inspection will visit the campus to conduct an assessment.
