LOAN OPPORTUNITIES

GEDA currently administers four economic development loan programs providing financial assistance through loans and loan guarantees.

The ADF loan program is a joint project with the Department of Agriculture and the UOG College of Agriculture and Life Sciences and is designed to aid in the development of locally produced agriculture products. Currently, the responsibility for its administration, financial and business management and marketing activities are vested with the Guam Economic Development and Authority.

The program’s target market is limited to individuals, corporations and partnerships that engage in commercial agricultural businesses. Activities include the areas of agriculture, aqua-culture, horticulture, mari-culture, commercial fishing and other related areas. The program enables bonafide farmers and commercial farming enterprises to obtain a line of credit financing for working capital needs and to provide funding for the purchase of supplies and inventory.

ELIGIBILITY REQUIREMENTS

  1. Individuals must be U. S. Citizens or permanent resident aliens who are residents of Guam for at least 3 years.
  2. Applicants must obtain a written certification and recommendation from the Department of Agriculture and UOG Agriculture Natural Resources (ANR), Cooperative Extension Service (CES) identifying them as a “bonafide” farmer or commercial farming enterprise. Bonafide farmer(s) are individual(s) who are registered with the Department of Agriculture who commercially grow and harvest agricultural products for profit.
  3. The business must meet one of the following criteria:
    • Creation of employment
    • Replacement of imports
    • Reduction of consumer prices
    • Creation of a vitally needed facility
  4. Applicants must be a registered business and have a valid Guam business license.
  5. Declination letters ARE NOT REQUIRED.
MAXIMUM LOAN AMOUNT
  • $50,000.00
TERMS
  • Line of Credit
  • One (1) year term (no pre-payment penalty)
  • Interest rate is fixed at 4%
USE OF FUNDS
  • Purchase furniture, fixtures, equipment
  • Leasehold improvements
  • Working Capital
COLLATERAL
  • Business and personal assets
  • Personal guarantees
  • Real Property
FEES & CHARGES
  • Documentation - 2% of loan amount
  • Processing & Legal fees may be applicable
The purpose for GDFA is to provide financial assistance through loans and loan guaranties to private enterprises and industries thus promoting the economic development of Guam. The Guam Economic Development Authority (GEDA), a public corporation, was charged to assist in the implementation and administration of GDFA. This program is targeted at businesses that are engaged or about to engage in activities in the areas of agriculture, fishing, manufacturing, tourism, and their support industries. GDFA enables start-ups and existing businesses to secure long-term financing for the acquisition of long-term fixed assets, working capital needs and to provide funding for the purchase of supplies and inventory.

ELIGIBILITY REQUIREMENTS

  1. Two written denials from private, commercial lending institutions.
  2. Individuals must be U. S. Citizens or permanent resident aliens who are residents of Guam.
  3. Project must fit at least one of the following loan categories:
    • Agriculture
    • Fishing
    • Manufacturing
    • Tourism
    • Support industries for the above entities
  4. The business must meet one of the following criteria:
    • Creation of employment
    • Replacement of imports
    • Reduction of consumer prices
    • Creation of a vitally needed facility
  5. Applicants must be a registered business and have a valid Guam business license.

TYPES OF FINANCIAL ASSISTANCE

  • Direct Participation & Guarantees
  • Direct Loans
  • Line of Credit

MAXIMUM LOAN AMOUNT

  • All applicants will be reviewed on a case by base basis.
TERMS
  • TBD by risk factor & use of funds
  • Interest rate is based on U.S. Treasury Index Rate + up to 4%

USE OF FUNDS

  • Purchase furniture, fixtures, equipment
  • Leasehold improvements
  • Working Capital

FEES & CHARGES

  • Documentation - 2% of loan amount
  • Processing & Legal fees may be applicable
The State Small Business Credit Initiative (SSBCI) is a Federal program administered by the Department of the Treasury that was funded with $1.5 billion to strengthen state programs that support private financing to small businesses. In conjunction with leveraged private financing, the SSBCI is expected to help spur up to $15 billion in lending to small businesses that are not getting the loans or investments they need to expand & create jobs. Guam was allocated a total of $13,168,350 under the SSBCI program. The funds were allocated specifically to the Guam Economic Development Authority (GEDA) to be used for a Loan Guarantee Program. The goal for Guam is to increase the availability of funds to spur entrepreneurship in the community, creating new start-up businesses and to expand existing ones that will result in more job opportunities and added goods and services offered to the people of Guam.

THE PROCESS

GEDA has established a partnership with banks and credit unions to administer loan funds through the Loan Guarantee Program. Participating banks & credit unions will process loan applications using their individual underwriting process & then enroll these into the SSBCI program.

ELIGIBILITY & PURPOSE

Loan funds can be used for business operations including start-up costs, working capital, business procurement, franchise fees, equipment, inventory, & the purchase, construction, renovation or improvements of an eligible place of business.

LOAN GUARANTEE PROGRAM

This program is meant to encourage banks to make small business loans that are not traditionally bankable.

The program provides a lender with the necessary security, in the form of a guarantee, for the lender to approve a loan or line-of-credit it might normally disapprove.

GEDA will guarantee up to 75% of a loan, not to exceed $500,000 for a period not to exceed seven (7) years.

PARTICIPATING LENDERS

BANK OF GUAM - Keven Camacho, (671) 472-5165 COMMUNITY FIRST FEDERAL CREDIT UNION - Michael Finona, (671) 4728210

PARTNERS

UOG, Pacific Center for Economic Initiatives UOG, Small Business Development Center U.S. Small Business Administration Guam Chamber of Commerce
GEDA’s Accelerator Program was created to respond to an ever tightening lending environment in Guam wherein many banks have turned away from small business customers, even those with the ability to repay a loan, particularly if the business was a start-up or operated for a short period of time, lacked sufficient borrower equity, and possessed devalued real estate or equipment collateral.  Our program addresses this and provides funding to encourage start-ups and expansion of small and micro businesses that would create new job opportunities for our community.
FUNDING: GDFA Loan Fund set aside amount of five million  dollars ($5,000,000.00) MAXIMUM LOAN AMOUNT: $500,000.00 per borrower MAXIMUM TERM: 10 years INTEREST RATE: 1%-2% plus prime LOAN FEE: 1% of loan amount
OTHER FEES:
  • Application Fee $50.00
  • Annual loan servicing fee .05% of loan balance due annually

FEES TO BE CHARGED AT COST (AS APPLICABLE):
  • Credit Report $10.00 per applicant
  • UCC1, 2 & 3 $10.00 each
  • Preliminary Title Report $100.00
  • Appraisal Fee: $450.00 residential / $5,000.00 commercial
DOCUMENTS TO BE PROVIDED TO GEDA WITH APPLICATION (AS APPLICABLE):
  1. Two written denials from private, commercial lending institutions.
  2. Current Guam Business License
  3. Corporate Resolution to Borrow
  4. Business Plan
  5. Last 2 years Corporate Tax Returns
  6. Personal Financial Statement for each Principal with 20% or more ownership interest
  7. Last 2 Years Individual Tax Returns for each Principal with 20% or more ownership interest
  8. Police Clearance and Court Clearance for each Principal with 20% or more ownership interest
  9. Schedule of Collateral to be pledged to secure loan

ELIGIBLE BORROWERS:
  • Authorized to conduct business on Guam evidenced by a current Guam Business License
  • Any entity whose principals have not been convicted of a sex offense against a minor

INELIGIBLE BORROWERS:
  • Real estate investment firms
  • Firms engaged in activities prohibited by federal law
  • Gambling entities
  • Businesses who’s shareholders are convicted sex offenders
  • No prior conviction of a criminal offense other than a minor motor vehicle violation
  • No record of delinquency that results in a loan default on financial assistance from GEDA or any other instrumentality of the Government of Guam unless satisfactorily honored a workout agreement
  • Failure to meet and fulfill the terms and conditions of receiving GEDA assistance
  • No past due or unpaid civil judgment in the Superior Court of Guam
  • Not engaged in any activity that has resulted in prosecution for a felony or crime of moral turpitude or conviction for that type of crime in the courts of Guam, the United States or its territories, or foreign jurisdiction. Shall not apply in the event that the prosecution is dismissed with prejudice.

ELIGIBLE LOAN USES:
  • Start up costs
  • Working capital
  • Business acquisitions and expansions
  • Franchising fees
  • Equipment purchases
  • Inventory purchases
  • Renovation or improvements to a place of business

INELIGIBLE LOAN USES:
  • Used for partial change in ownership of the business, not to benefit business operations
  • Reimbursement of funds owed to any owner of the company
  • Payment of delinquent state or federal tax
  • Purchase of securities
  • Pyramid sales plans
  • Passive real estate
  • Gambling and other illegal activities
  • Lobbying activities

DOWNLOADS
Agriculture Development Fund Fact Sheet
Guam Development Fund Fact Sheet
State Small Business Credit Initiative
Southern District Youth Sports Grant Application
Accelorator Program

LINKS
Bank of Guam
Community First Federal Credit Union
University of Guam, Small Business Development Center
U.S. Small Business Administration
Pacific Islands Small Business Development Center Network
Guam Chamber of Commerce