Entrepreneurs & Startups
GEDA supports the development and expansion of businesses with an array of programs and initiatives supporting small business growth and helping entrepreneurs maximize opportunities for success.
For more information, please contact Gloria Molo at 671.647.4332 ext 151
Loan Programs
Agriculture Development Fund (ADF)
The ADF loan program is designed to aid in the development of locally produced agriculture products. 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 financing for working capital needs and to provide funding for the purchase of supplies and inventory.
Eligibility Requirements
- Individuals must be U. S. Citizens or permanent resident aliens who are residents of Guam for at least 3 years.
- Applicants must obtain a written certification and recommendation from the Department of Agriculture and/or 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.
- 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
- Applicants must be a registered business and have a valid Guam business license.
- Declination letters ARE NOT REQUIRED.
Maximum Loan Amount/Line of Credit
$50,000.00
Terms
Interest rate is fixed at 4%
Eligible Use Of Funds
- Purchase furniture, fixtures, equipment
- Leasehold improvements
- Working Capital
Fees & Charges
Application Fee: $20
Due at time of submission
Processing Fee: $100
Due at loan closing
Credit Report: $10
Due at time of submission for every shareholder owning 20% or more
UCC 1: $10
Determination made during underwriting and if applicable, will be due at loan closing
UCC 3: $10
Determination made during underwriting and if applicable, will be due at loan closing
Loan Fee: 2% of loan amount
Guam Development Fund Act (GDFA)
The purpose of the GDFA is to provide financial assistance through loans and loan guarantees to private enterprises and industries thus promoting the economic development of Guam. The 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
- Declination letter from a Financial Institution (not older than 90 days from date of application)
- Purpose of the loan must fit at least one of the following categories:
- Agriculture
- Fishing
- Manufacturing
- Tourism
- Support industries for the above entities
- Business must meet one of the following criteria:
- Creation of employment
- Replacement of imports
- Reduction of consumer prices
- Creation of a vitally needed facility
- Valid Guam business license
- Business plan
- Financial supporting documents
- Police & Court Clearances (not older than 30 days from date of application)
Terms
U.S. Treasury Index Rate + Up to 4%
Use Of Funds
- Start-Up Costs
- Working Capital
- Leasehold Improvements
- Furniture, Fixtures & Equipment
- Purchase, construction, renovation or improvements of an eligible place of business
- Fees associated with construction of business
Fees & Charges
Application Fee: $20
Due at time of submission
Processing Fee: $100
Due at loan closing
Credit Report: $10
Due at time of submission for every shareholder owning 20% or more
UCC 1: $10
Determination made during underwriting and if applicable, will be due at loan closing
UCC 3: $10
Determination made during underwriting and if applicable, will be due at loan closing
Loan Fee: 2% of loan amount
State Small Business Credit Initiative (SSBCI) – Loan Guarantee
The SSBCI is a federal loan guarantee program administered by the Department of Treasury that was funded to strengthen state programs that support private financing to small businesses. 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.
GEDA has established a partnership with financial institutions to administer loan funds through the loan guarantee program. Participating financial institutions will process loan applications using their individual underwriting process and then enroll the application into the SSBIC program
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 expansion, 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 – Janine Eustaquio, (671) 472-5349
Community First Federal Credit Union – Michael Finona, (671) 472-8210
Bankpacific Ltd – Leny Quinto, (671) 479-1157
Pacific Islands Development Bank – Christopher Cruz, (671) 477-0053
BUSINESS RESOURCES
Guam Small Business Development Center – https://www.pacificsbdc.com/locations/guam-sbdc
