New program enables Guam's small businesses to take part in large construction activity

By Pacific Island Times News Staff

The Guam Economic Development Authority and Moylan’s Insurance Underwriters Inc. have launched a federally funded program that expands the procurement market by opening doors for Guam’s small businesses to large projects.

According to the Office of the Guam Governor, the State Small Business Credit Initiative Surety Bond Assistance Program grants small businesses access to the required surety bonds needed for public and private construction opportunities.

“More local businesses taking part in these construction projects means more money staying in our local economy. It means a greater capacity to hire local people,” Gov. Lou Leon Guerrero said.

“It means earning more capital to invest back into our community,” she added.

The program allows qualified contractors to secure bid, payment and performance bonds backed by a GEDA guarantee of up to 30 percent of the contract amount, with a maximum of $600,000.

Officials said the reduced risk for partnering sureties makes the program a vital new resource for local businesses and stimulates job creation across the island.

The surety bond assistance program is among the three programs funded with $58.6 million in federal assistance approved by the U.S. Treasury in February 2023. The grant also funds a loan guarantee and an equity/venture capital program.

 “For many local businesses, a performance bond is the proverbial straw that breaks the camel’s back. With GEDA leading the way, we are showing the confidence our administration has in Guam’s homegrown talent and driven entrepreneurs,” Lt. Gov. Josh Tenorio said.

Program benefits include access to bonding for projects up to $2 million, an affordable guarantee fee of just 2 percent for bond lines and bid bonds and guarantees available for up to seven years.

Businesses operating in Guam for at least two years and having 500 or fewer employees are qualified for the program.

The business is required to create at least one new permanent job and have verifiable contract experience.

“GEDA is committed to expanding opportunities and leveling the playing field for our local small contractors,” said Christina Garcia, GEDA’s acting CEO/administrator. “By working with Moylan’s Insurance Underwriters, we foster stronger businesses, create jobs, and keep more project dollars circulating in Guam’s economy.”

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