Which type of bond is specifically for contractors borrowing money for projects?

The completion bond is specifically designed for contractors who are borrowing money for various construction projects. This type of bond serves as a guarantee to the lender that the contractor will complete the project as outlined in their financing agreement. Essentially, it provides assurance that the lender's investment is protected, and if the contractor fails to complete the project, the bond can be invoked to cover any losses incurred.

Completion bonds are typically issued in the context of real estate or construction projects, ensuring that funds will be used appropriately to finalize the work. This helps facilitate financing for contractors by minimizing the risk for lenders, fostering smoother project developments and ultimately benefiting all parties involved.

In contrast, fiduciary bonds relate to individuals who manage another person's assets, public official bonds are for officials to ensure they perform their duties appropriately, and license and permit bonds are required for individuals or businesses to obtain various licenses or permits to operate legally. These other types of bonds serve different purposes unrelated to financing construction projects, which underscores why the completion bond is the most appropriate answer in this scenario.