Have you been wanting to start a small business, but can’t get a loan? Or, do you own a business and just need some cash? If so, we have some great news for you.
Another Guam financial institution has signed on with the Guam Economic Development Authority to become the second institution to become a participating lender to the SSBCI Loan Guarantee and Loan Participating Programs, which GEDA administers.
“There are lots of people who want to start a small business, or people who have a small business that needs some financial help. I’m thankful my administration and the private sector are partnering up to support Guamanian entrepreneurs,” Governor Eddie Baza Calvo said.
The SSBCI program, a part of the U.S. Department of the Treasury, stimulates lending to small businesses that might not be qualified under standard commercial lending practices by sharing the risk in the form of loan guarantees. As a result, the resources become available to start-up or expand small businesses and create local jobs. With this program, the lender initiates the loan by underwriting, qualifying and submitting enrollment candidates to GEDA. GEDA then reviews the application and approves enrollment based upon the SSBCI program guidelines.
There are two programs being offered on Guam. The first, already offered at the Bank of Guam and now offered at the Community First GFCU, is the Enrollment in the Loan Guarantee Program. This program provides lenders a guarantee up to 75 percent of the total loan amount, held at the participating lender’s institution.
The second program, the Loan Participation Program, allows a lender to issue loans to borrower with a portion of loan proceeds coming from SSBCI funds, thus reducing the borrower’s blended interest rate. The participation of SSBCI funds is limited to 40% of the loan amount. Community First GFCU is the first lender in the SSBCI Loan Participation Program.
For more information, please call Rachel Leon Guerrero, GEDA’s SSBCI Program Manager, at 647-4332 or view information sheets at www.investguam.com or Jennifer Orot, Community First’s Member Business Relationship Officer, at 648-6246.