THE U.S. Small Business Administration approved the Community First Guam Federal Credit Union, or CFGFCU, to make government backed SBA business loans, a press release said. 
In granting this approval, CFGFCU has become the first credit union in Guam to participate in SBA’s lending programs.  Traditionally, bank lending financial institutions and some non-bank commercial lending organizations have been the primary guaranteed lending partners in SBA financed loans.  Recent regulatory changes have encouraged credit unions to become active in commercial lending, including participating as partners in SBA loan programs.  CFGFCU applied to the SBA and was approved to become a participant in SBA’s lending programs.
“The SBA is proud to have Community First Guam Federal Credit Union join us as a resource partner in financing small business loans to Guam’s business entrepreneurs.  Guam’s small businesses will benefit directly from their involvement in SBA programs and services,” said SBA Guam Branch manager Kenneth Q. Lujan.
A major concern today for small business owners is access to capital and credit.  As an SBA resource lending partner, CFGFCU will be participating in SBA’s 7(a) Loan Guaranty Program that provides several different financing options to small businesses.  Loans made under the SBA 7(a) program include longer loan terms and lower interest rates than conventional loans along with broad eligibility and credit criteria to accommodate a wide range of financing needs.  Small businesses may use SBA loan proceeds to expand or remodel a business, purchase machinery, equipment, working capital, finance seasonal lines of credit, construct commercial buildings and/or purchase land or buildings.
Gerard A. Cruz, president and CEO of the Community First Guam Federal Credit Union said, Community First is “proud to have been approved to participate in SBA’s 7(a) program.” 
“For 45 years, Community First has developed lifetime partners to thousands of members in the consumer market.  We are excited to be able to offer this partnership to our business community,” Cruz said.
Lujan said “SBA business loan programs are a win-win situation for the participating lender, the small business concern and the local community.”  
“SBA loans reduce the risk that lenders take on financing loans by guaranteeing major portions of the loan amount which in turn allows the business to borrow capital.  SBA loans enable lenders to provide financing to small businesses when funding may otherwise be unavailable on reasonable terms.  On the island of Guam, small business concerns will now have an additional source of financing,” he added.
Other SBA participating lenders include the Bank of Guam, Bank of Hawaii, BankPacific, Citibank, Citizens Security Bank, and First Hawaiian Bank.  For more information on SBA’s Loan Program, please visit SBA’s Web site at http://www.sba.gov/financing or call the Guam Branch Office at (671) 472-7419.