Congressman James Moylan, together with Congresswoman Kimberlyn King-Hinds from the Northern Mariana Islands, has introduced H.R. 7229, known as the Territorial SBA Loan Guaranty Adjustment Act of 2026. The bill seeks to increase federal guarantees for certain Small Business Administration (SBA) loans in U.S. territories.
Small businesses in Guam and other U.S. territories often encounter more difficulty obtaining financing compared to those on the mainland. Factors such as geographic isolation, higher shipping expenses, and smaller markets make lending riskier for banks. This can result in even creditworthy businesses struggling to access needed capital.
The proposed legislation would raise the federal guarantee for most SBA 7(a) loans—including Standard 7(a), 7(a) Small loans, and some working capital lines of credit—to 90 percent for eligible territorial businesses. Currently, these guarantees range between 75 and 85 percent. Increasing the guarantee is intended to reduce lenders’ potential losses if a loan defaults, which may encourage more banks to approve loans in these regions.
Specialized loan programs would remain unchanged under this measure.
Supporters believe that improved access to SBA-backed financing could help more locally owned businesses start up or expand in Guam and other territories, potentially leading to greater job opportunities and economic growth.
“When our small businesses cannot access capital, our entire economy feels it,” said Congressman Moylan. “Business owners in Guam face higher costs and greater lending challenges than many of their counterparts in the mainland. By strengthening the SBA loan guarantee for territorial businesses, this legislation helps level the playing field, unlocks private lending, and gives our small business owners a fair opportunity to grow and compete.”
Congressman Moylan has stated he will continue working on policies that address structural economic issues faced by U.S. territories so that federal programs better reflect local conditions.
