WASHINGTON — Congressman James Moylan and Congresswoman Kimberlyn King-Hinds have introduced H.R. 7229, the Territorial SBA Loan Guaranty Adjustment Act of 2026, legislation that would increase federal backing for certain Small Business Administration loans issued to businesses in U.S. territories.
Under current law, SBA guarantees typically cover between 75 and 85 percent of a loan. The bill would raise that coverage 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. Existing specialized loan programs would remain unchanged.
The higher guarantee reduces a lender’s potential loss in the event of a default, which the bill’s sponsors say encourages banks to approve more loans in territorial markets where geographic isolation, higher shipping costs, and smaller local economies already make lending a riskier proposition.
“When our small businesses cannot access capital, our entire economy feels it,” Moylan said. “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.”
