Congressman Moylan Introduces Bill to Increase SBA Loan Guarantees for Territorial Small Businesses

(Washington, D.C.)-Congressman James Moylan, alongside Congresswoman Kimberlyn King-Hinds of the Northern Mariana Islands, has introduced H.R. 7229, the Territorial SBA Loan Guaranty Adjustment Act of 2026, legislation to strengthen access to small business loans in U.S. territories by increasing federal backing for certain SBA loans.

Small businesses in Guam and the other U.S. territories often face greater challenges securing financing than their mainland counterparts. Geographic isolation, higher shipping costs, and a smaller local market can make lending here riskier from a bank's perspective. As a result, even creditworthy small businesses can find it harder to secure the financing needed to invest, hire, and remain competitive.

H.R. 7229 addresses this imbalance by increasing the federal guarantee to 90 percent for the SBA's primary 7(a) loan programs, including Standard 7(a) and 7(a) Small loans, as well as certain working capital lines of credit issued to eligible territorial businesses. Under current law, SBA guarantees typically cover between 75 and 85 percent of a loan. By raising that coverage to 90 percent, the legislation reduces a lender's potential loss if a loan defaults, encouraging banks to approve more loans in territorial markets.

The increased guarantee would apply to most standard SBA 7(a) loans for territorial businesses, while leaving existing specialized loan programs unchanged.

For Guam, improved access to SBA-backed financing can mean more locally owned businesses opening their doors, existing businesses expanding operations, and stronger job opportunities for residents.

By adjusting federal policy to reflect the realities of territorial economies, the measure aims to support long-term economic stability and private-sector 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 continues to prioritize policies that address the structural economic challenges faced by U.S. territories and ensure federal programs reflect the realities of island economies.

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