The Governor of Guam has directed and provided funding toward the establishment of a small business grant program. This program is entitled, the Guam Small Business Pandemic Assistance Grant (GSBPA) Program. The GSBPA Program provides grants to small businesses experiencing business interruption due to the 2019 Novel Coronavirus (COVID-19). The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted into law on March 27, 2020 and created the Coronavirus Relief Funds program. Guam received $117.9 million in Coronavirus Relief Funds.
Of the total Coronavirus Relief Funds, the Leon Guerrero Tenorio Administration has set aside up to $20 million for direct assistance to small businesses experiencing business interruption due to the COVID-19 pandemic. The program is administered by the Guam Economic Development Authority.
Stakeholder groups consulted in the creation of this program, were as follows:
- Guam Chamber of Commerce
- Guam Women’s Chamber of Commerce
- Korean Chamber of Commerce
- Chinese Chamber of Commerce of Guam
- Guam Hotel and Restaurant Association
DEFINITIONSSMALL BUSINESS Guam Businesses that have gross receipts from month ending March 2019 through February 2020 of up to One Million Five Hundred Thousand Dollars ($1,500,000). Guam Businesses that have gross receipts from month ending March 2019 through February 2020 of more than One Million Five Hundred Thousands Dollars ($1,500,000) shall be categorized using the U.S. Small Business Administration (SBA) Table of Small Business Size Standards Match to North American Industry Classification System Code. (Effective August 19, 2019) BUSINESS INTERRUPTION Business Interruption is the reduction in gross receipts of 25% or more between the month ending April 2020 and the average monthly Annual or Annualized (if actual months operations is less than 12 months) gross receipts between the months ending March 2019 through February 2020.
- Business maintains a current Guam Business License*
- Business files income taxes on Guam
- Business was in operation on or before October 1, 2019
- Business must have experienced business interruption as defined above.
- Non-profit organizations
- Businesses solely involving in passive investments
- Shell companies
- Grant Application
- Self Certification Form confirming information submitted is true and correct under penalty of perjury.
- A copy of Current Guam Business License*
- FORM SW-2 (Employer Quarterly State Wage report) *Only for AGR above $1.5 million
- GRT filings from March 2019 to April 2020
(Stamped copies or E-filing copies are acceptable)
- For businesses who commenced operation on or after April 1, 2019, the GRT filings as of the first GRT filing month through April 2020 is required.
APPLICATION DEADLINEApplications will be accepted via email to [email protected] beginning May 19, 2020. The grant deadline is December 30, 2020 and is subject to the availability of funds.
GRANT CALCULATIONStep 1: Calculate the annual or annualized gross receipts.
- For businesses in operation on or before March 2019 (April 2019 GRT), calculate annual gross receipts.
- For new businesses that commenced operation after March 30, 2019 but before October 2019, calculate annualized gross receipts.
- Divide annual or annualized gross receipts determined in STEP 1 by 12, to determine average monthly receipts.
- Subtract May 2020 GRT filing from average monthly receipts to determine business interruption amount.
- Divide business interruption amount by average monthly receipts to determine business interruption percentage.
- Calculate using the formula below: Multiply (x) average monthly gross receipts by 0.25 = Grant Amount
- The maximum grant award amount is the lesser of the formula calculation and the Max Grant based on the Grant Bracket.
- Download the grant application form found on the GEDA website at www.investguam.com/smallbusiness.
- Submit the completed application form and all required documents via email to [email protected].
- GEDA will provide a grant application number via email once received.
- If received complete, application will proceed to STEP 5. If incomplete, a GEDA grant manager will contact the applicant via phone or email for pending documents.
- Notice of Grant Application Status will be issued via mail.
- If approved, grant award will be issued via check by the Guam Department of Administration (DOA).
Award AmountTotal award amount based on grant calculation and shall not exceed Fifty Thousand Dollars ($50,000) per business. Grant awards cannot exceed the grant amounts per bracket as shown in the Grant Table.
OVERVIEWWhat is the purpose of the Guam Small Business Pandemic Assistance Program (SBPAP)?
- The Guam Small Business Pandemic Assistance Grant offers emergency relief through a grant to small businesses that had and continue to experience business interruption and financial loss due to the 2019 Novel Coronavirus (COVID-19). Governor Lourdes A. Leon Guerrero has allocated $20 million dollars to this program and has tasked the Guam Economic Development Authority (GEDA) to process all grant applications. Approved applications will be routed to the Guam Department of Administration (DOA) for fund disbursement.
- The program’s intent is to provide as much financial assistance as possible to the greatest number of local businesses as possible. In general, larger revenue businesses have greater expenses than smaller businesses in proportion to their revenue. As such, larger revenue businesses would generally have more business interruption.
- GEDA reached out to various business associations for input and the $1,500,000 was agreed to be the cap for the grant program.
ELIGIBILITYWhat businesses qualify for grant funding?
- Business eligibility is based on total annual or annualized gross receipts as all as the date of the start of business as detailed below:
- Small business located in Guam with total annual or annualized gross receipts of $1,500,000 or less between the period of March 2019 to February 2020.
- Business is in operation by no later than October 1, 2019.
- GEDA will determine annual/annualized gross receipts based on copies of monthly gross receipts (GRT) filings to the Guam Department of Revenue and Taxation (DRT). These calculated annual/annualized receipts will be used to determine appropriate grant amounts.
- NO. All businesses must wholly satisfy every eligibility requirement.
- NO. The program requires business operations to have commenced for at least 5 full months prior to the Public Health Emergency Declaration by Governor Lourdes A. Leon Guerrero in March 2020.
- YES. Businesses of this type may receive grant funds if they meet all program eligibility requirements.
- YES. Business of this type may receive grant funds if they meet all program eligibility requirements.
- YES, provided each business is a unique business entity with a different business name and different business license.
- YES. IF the business is physically located in Guam, files and pays taxes in Guam, and meets all program eligibility requirements it may receive grant funds.
- NO. All businesses interested in receiving grant funds must file all required GRT forms to be eligible. The DRT is now open for businesses to file GRT forms. Businesses may apply for pandemic grant assistance after all necessary GRT forms have been filed.
- In general you would not be eligible. Please contact GEDA for further guidance.
- If your business was deemed essential and allowed to remain open, you may still receive grant funds if the business meets all program eligibility requirements.
- YES. Business licenses expiring in March, April, May, and June 2020 will be extended through July 31, 2020.
APPLICATIONWhat do I need to submit to GEDA?
- Copies of all forms can be found online at www.investguam.com/smallbusiness. A completed application package shall consist of the following:
- A fully completed and signed application form;
- A fully completed and signed self-certification form;
- A copy of a current business license or other appropriate government issued document or license; and
- Copies of all applicable filed GRT forms for the months of March 2019 through April 2020.
- YES. Incomplete applications will not be fully processed without all required documents/information. This will cause a delay in the processing of your application. Applications that fail to include all required documents/information will not be considered eligible to receive grant funding.
- YES. As long as you have filed the forms with the DRT, and you are in arrangement with them to pay your tax liability, you may apply.
- GEDA will accept applications up to December 30, 2020, subject to the availability of funds.
- GEDA expects a high volume of applications. As such, we have a goal to provide an application number within 2 business days of receipt of complete application package. However, there may be slight delays based on application volume.
- Grant reviews are expected to take no longer than 5 working days after submission of completed application.
- Once GEDA approves an application, documents will be prepared to provide notice of approval to the Department of Administration to begin the process of printing and dispensing grant awards.
- We encourage as many businesses as possible to utilize our online services in order to promote effective social distancing to prevent the further spread of COVID-19. However, if you are unable to access our electronic services, you can visit the GEDA office located on the 5th floor of the ITC building in Tamuning to pick up an application and information about the program. We ask all individuals coming to the office to please obey all social distancing and safety requirements as indicated.
USE OF FUNDSWill I have to repay any/all of the monies received?
- NO. These funds are provided to businesses in the form of a grant and do not need to be repaid to the government of Guam. However, if it is determined that a business utilized funds to reimburse ineligible expenses, the business will be required to pay back the monies used.
- NO. However all businesses will be required to maintain records or receipts for all expenses paid utilizing grant funds should your business be audited after award.
- Businesses must take care that they use grant funds only for costs associated with business interruption due to COVID-19. This means that they may use the funds to reimburse business costs, such as payroll, personnel benefits, rent/mortgage payments, vendor payments and others during the public health emergency declaration’s efforts to halt the spread of COVID-19. Funds may not be used for any other purpose. All applicants are required to sign a self-certification form that provides more information on allowable expenses. Businesses that receive grant funds can contact the GEDA if they have questions if specific costs may be covered with grant funds.
RECONSIDERATIONWhat happens if my application is denied?
- If the GEDA deems that a business is ineligible to receive grant funds based on the information contained in an application, said business will be provided written notice detailing all the reasons why they were deemed ineligible. The notice will also provide instructions for businesses who may wish to have their application reconsidered for funding.