New funds under federal credit program accessible to Guam's small businesses

By Pacific Island Times News Staff

The Guam Economic Development Authority has received approximately $19.5 million, representing the second tranche of funding under the State Small Business Credit Initiative, following the initial $19 million allocation that has already been disbursed.

The business credit initiative is a $10 billion federal program that supports small businesses and entrepreneurship in communities across the United States by providing capital and technical assistance.

“We have already seen these programs help businesses access capital, expand operations, and pursue new opportunities," said Christina Garcia, GEDA administrator.

"From a mom-and-pop shop securing its first equipment loan to a tech startup ready to scale globally, this new injection ensures the momentum of Guam’s economic expansion remains uninterrupted," she added.

Guam was awarded a total of $58.6 million through the SSBCI to support three core programs: the Loan Guarantee Program, Surety Bond Assistance Program, and the Destinu Guåhan Venture Capital Fund.

 “By aligning federal resources with local innovation, we are building a more resilient and opportunity-driven economy," Gov. Lou Leon Guerrero said.

GEDA said the release of the second tranche ensures continued access to capital for local businesses seeking to expand, create jobs and invest in innovation.

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SSBCI programs are designed to leverage private sector participation, with a goal of generating $10 in private lending for every $1 of federal funding.

With this second tranche, GEDA anticipates catalyzing nearly $200 million in total private credit and investment over the life of the program.

“Securing this second tranche is a strong vote of confidence from the U.S. Treasury in GEDA’s ability to deploy funds effectively,” Garcia said.

To date, GEDA’s SSBCI Loan Guarantee program has supported 46 local businesses by unlocking private financing through partnerships with Bank of Guam, Bank Pacific, Community First and PFC Finance.

By guaranteeing up to 75 percent of a loan, the program reduces lender risk and expands access to capital. Complementing this effort, the SSBCI Surety Bond Assistance Program recently achieved its first enrollment through First Net Insurance Company, offering guarantees of up to 30 percent to help small contractors compete for larger contracts.

A significant portion of SSBCI funding will continue to support the Destinu Guåhan Venture Capital Fund, which enables GEDA in high-growth industries such as technology, agriculture, and manufacturing to help diversify Guam’s economy and innovation.

By investing directly in scalable businesses, the funds help attract additional private investment and position Guam as a regional hub of innovation, GEDA said.

“GEDA’s strategy goes beyond traditional financing,” said Siska Hutapea, chair of the GEDA board. “Through Destinu Guåhan Venture Capital Fund, we are investing in innovation and diversification to strengthen Guam’s economic future. This second tranche allows us to expand that vision and support the next generation of transformative businesses.”

Lt. Gov. Josh Tenorio said the programs are creating quality jobs and strengthening Guam’s long-term economic foundation.

Small business owners interested in the SSBCI Loan Guarantee, Surety Bond Assistance, or Venture Capital programs are encouraged to visit www.investguam.com or contact one of the participating partners to begin the application process.

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