Territorial SBA Loan Guaranty Adjustment Act of 2026

H.R. 7229 would modify the Small Business Administration's loan guaranty program to help small business owners in U.S. territories including Guam, Puerto Rico, the U.S. Virgin Islands, American Samoa, and the Northern Mariana Islands. Currently, the federal government guarantees between 75 and 85 percent of SBA 7(a) loans. This bill would raise that guarantee to 90 percent for the primary SBA 7(a) loan programs and certain working capital lines of credit issued to eligible territorial businesses, while leaving specialized loan programs unchanged.

The bill's sponsors argue that small businesses in territories face greater challenges securing financing than mainland counterparts due to geographic isolation, higher shipping costs, and smaller local markets. By increasing the federal guarantee, lenders would shoulder less risk in the event of a default, potentially encouraging banks to approve more loans in these markets. The measure would apply to Standard 7(a) and 7(a) Small loans but would exclude certain specialized SBA loan categories and pilot programs. If enacted, the bill could expand access to capital for territorial small business owners seeking to invest, hire, and grow their operations.