State Small Business Credit Initiative Promoting Equitable Economic Growth
Hagåtña, Guam – Today, the Leon Guerrero-Tenorio Administration announced that Guam is one of the first U.S. territories to be approved for funding from the State Small Business Credit Initiative (SSBCI). Guam is receiving $58.6 million to operate three programs: a loan guarantee, a collateral support, and an equity/venture capital program.
“This is a historic investment in entrepreneurship, small business growth, and innovation that will help reduce barriers to economic opportunities for underserved communities,” said Governor Lou Leon Guerrero. “The last two years have been called the strongest on record for new business applications, with over 10 million new businesses opened across the country. These latest investments will keep this small business boom going by expanding access to capital and by providing entrepreneurs the resources they need to succeed.”
“In addition to improving private investments, these funds will promote equitable economic growth in our economy,” said Lt. Governor Josh Tenorio. “SSBCI funding is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, amplifying the effects of this funding, providing small business owners with the resources they need to sustainably thrive, and lifting up communities disproportionately impacted by the pandemic.”
The loan guarantee program, allocated over $36 million, provides lenders with the necessary security, in the form of a partial guarantee, to incentivize lenders to make loans to borrowers. The program expands access to capital for underserved communities by using a multi-pronged marketing strategy with various organizations and lenders. The collateral support program, allocated $12 million, provides partner lenders cash collateral in a savings account to support loans to borrowers. The equity/venture capital program, allocated $10 million, provides seed, early and growth stage equity investment to Guam-based startups.