Guam has been approved for $54 million under the Small Business Credit Initiative (SBCI) program.
The good news was announced during the Guam Economic Development Authority’s board meeting Thursday afternoon.
According to GEDA chairman David John, the $54 million approved for Guam was consistent with the allotments for territories and other small states.
The SSBCI was created through the Small Business Jobs Act of 2010 to strengthen state programs that support the financing of small businesses.
SSBCI was created in response to the last major recession and its goal is to cover some of the losses that occur naturally in making small business loans or small business investments.
According to John, the SBCI funding allotted to Guam will be disbursed in three tranches of funding and will be used to guarantee loan lenders and new venture capital.
What’s powerful about the SSBCI program is its flexibility because it allows each state or territory to design its own program.
And for the program to work, it would require close planning and coordination at three different levels — the federal level, the territorial government level, and then the local lending institution itself.
During a recent webinar hosted by Congressman Michgael San Nicolas, representatives from Bank of Guam, Coast360, First Hawaiian Bank, and other business groups and financial institutions expressed interest in the SBCI program.