Secure Your Broker Authority with a BMC-85 Trust
What is a BMC-85?
A BMC-85 is a trust fund agreement that freight brokers and forwarders can use to meet the FMCSA’s $75,000 financial security requirement. Unlike a BMC-84 surety bond, which involves a surety company, the broker deposits $75,000—either in cash or through an Irrevocable Letter of Credit—into a trust account held by a licensed financial institution. The funds are held in the broker’s name to protect carriers and shippers in case of non-payment. If the broker defaults, affected parties can file a claim against the trust to recover losses. The BMC-85 does not require a credit check or underwriting, making it a common option for brokers who have cash on hand but may not qualify for a bond. However, the funds are typically locked for a year or more, even if the broker cancels the agreement or exits the business. Trust companies also charge an annual administration fee to maintain the account.
Any freight broker or freight forwarder applying for or renewing their FMCSA operating authority must show proof of $75,000 in financial security. You can choose either a BMC-84 surety bond, or a BMC-85 trust fund agreement.
The FMCSA accepts either option and does not require one over the other.
A BMC-85 trust fund may be the right choice if:
- You prefer not to use a BMC-84 surety bond
- You have $75,000 available in cash or a combination of cash and an Irrevocable Letter of Credit (ILOC)
- You want more control over your funds instead of paying annual premiums to a surety company
- You are applying for new broker/forwarder authority or renewing and need to meet the FMCSA’s $75,000 requirement
Here’s how to file Form BMC-85 to secure your freight broker authority:
- Get Your MC Number
Apply for freight broker authority from FMCSA to receive your Motor Carrier (MC) number. - Choose a Trust Provider
Pick an FMCSA-compliant trust company (must be licensed and approved to issue BMC-85 agreements) - Deposit $75,000
You must deposit $75,000 in cash, or a combination of cash + ILOC, into the trust account - Sign Trust Documents
Complete your Form BMC-85, which includes your business name, MC number, and beneficiary details - Provide Supporting Docs
Most trust providers ask for:Your broker authority certificate, USDOT Number (if separate), business registration or license, and proof of funds (usually a bank statement) - Trust Provider Files with FMCSA
Once everything’s in order, the trust company files Form BMC-85 electronically with FMCSA.
To set up a BMC-85 trust fund agreement, you’ll need to deposit $75,000 upfront, either entirely in cash or as a combination of cash and an Irrevocable Letter of Credit (ILOC). Trust providers also charge annual administration fees, typically between $1,000 and $1,500. Setup fees may apply. Funds are usually locked for at least 12 months, even if you cancel or leave the business.
BMC-85 agreements must be renewed annually, typically on the original filing date. Begin the renewal process at least 30 days early to avoid disruptions. Missing the deadline can result in FMCSA revoking your broker authority.
Operating without a valid BMC-85 or BMC-84 on file can result in:
- Revocation of your broker authority by FMCSA
- Fines for non-compliance
- Legal claims from shippers and carriers
- Blacklisting in broker databases
- Loss of clients, income, and credibility
Questions About BMC-85?
We’ve Got Answers!
What are the requirements to file Form BMC-85?
You will need: Active FMCSA broker/forwarder authority (MC Number), $75,000 deposit (cash or ILOC), , an agreement with a FMCSA-approved Trust company, and the BMC-85 form, signed with all broker details.
Are there monthly payments for BMC-85?
No. The full $75,000 must be deposited upfront. There are no monthly premiums like with a BMC-84 bond.
What if my trust company becomes insolvent?
FMCSA does not require insolvency protection. If your trust provider goes under:
- You might lose access to the $75K,
- Your filing becomes invalid,
- Your authority can be revoked
Choose your trust company wisely.
Q4. What's the difference between a BMC-85 and a BMC-84?
A BMC-84 is a surety bond issued by a surety company. It usually requires a credit check, and you pay an annual premium—typically between $750 and $2,000 based on your credit. If a claim is filed, the surety company pays it and you’re responsible for repaying them.
A BMC-85 is a trust fund agreement where you deposit $75,000 in cash (or a combination of cash and an Irrevocable Letter of Credit) into a trust account. There’s no credit check, and claims are paid directly from your funds.
Do I need an MC Number to file a BMC-85?
Yes. You can’t file Form BMC-85 without an MC Number. Apply for your broker authority first, then file the form.
BMC-85 Official PDF
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