H.R. 7229: Territorial SBA Loan Guaranty Adjustment Act of 2026

This bill, titled the Territorial SBA Loan Guaranty Adjustment Act of 2026, aims to modify the Small Business Act to enhance loan guarantees for small businesses located in certain U.S. territories. Here’s a breakdown of its main provisions:

Loan Guarantees for Covered Territory Businesses

The bill introduces amendments to section 7(a) of the Small Business Act affecting loan participation by the Small Business Administration (SBA) for businesses in covered territories. The key points are as follows:

• Increased Participation Rate: For loans made to small businesses in specified territories, the SBA will provide a 90% loan guarantee. This means that if a business defaults on the loan, the SBA will cover 90% of the loss for the lender.
• Exceptions to Guarantee: The 90% guarantee does not apply to certain types of loans, specifically those categorized under paragraphs (9), (14)(A), (16), (31), or (34) of the Small Business Act, or those made under specific pilot programs.
• Conforming Amendments: The language in the act will be updated to reflect these changes, specifically modifying existing statutes to incorporate the new provisions.

Objectives of the Bill

The main goal of this legislation is to provide more substantial support for small businesses in U.S. territories, facilitating easier access to capital through enhanced guarantees. This is expected to address financial hurdles that small businesses in these areas face, potentially leading to growth in these local economies.

Impact on Small Businesses

This bill particularly targets small businesses operating in designated territories, which can include areas with unique economic challenges. By increasing the level of guaranteed loans, the intention is to encourage lenders to be more willing to extend credit, which may help stimulate business development and create jobs in these regions.

Administrative Details

The bill was introduced in the U.S. House of Representatives and has been referred to the Committee on Small Business for further consideration. The introduction is led by Mr. Moylan, with Ms. King-Hinds as a co-sponsor.

Relevant Companies

None found.