Bill seeks boost for territorial small business loans

Guam small businesses could soon see improved access to financing under new legislation introduced in congress. 

Congressman James Moylan, alongside Northern Mariana Islands congresswoman Kimberlyn King-Hinds, has introduced the Territorial SBA Loan Guaranty Adjustment Act of 2026. The bill would increase the federal guarantee on certain Small Business Administration loans for businesses in United States territories to 90 percent.

Currently, SBA guarantees typically cover between 75 and 85 percent of a loan. Supporters say raising that coverage would reduce the financial risk for lenders and encourage banks to approve more loans for territorial businesses.

Lawmakers note that small businesses in Guam often face greater challenges securing financing due to geographic isolation, higher shipping costs, and a smaller local market.

If passed, the increased guarantee would apply to most SBA 7(a) Loan programs, including standard and small loans, as well as certain working capital lines of credit.

Congressman Moylan says strengthening these guarantees could help level the playing field for Guam’s small businesses.

He adds that when local businesses gain better access to capital, it can lead to more companies opening, existing businesses expanding, and stronger job opportunities for residents.