HAGÅTÑA (The Guam Daily Post) — In May, a second round of $20 million for the Local Employers’ Assistance Program, or LEAP 2, was passed by lawmakers and approved by Gov. Lou Leon Guerrero.
The program provides forgivable loans to businesses still suffering from the economic fallout of the COVID-19 pandemic and is meant to help keep employees on payroll.
Only $5 million of LEAP 2 will come from American Rescue Plan funding under the governor’s purview; the remaining $15 million must come from local tax revenue.
Lester Carlson, director of the Bureau of Budget and Management Research, said in a recent interview that all resources in local revenue were being dedicated to typhoon recovery. Lawmakers authorized the governor to direct up to $50 million toward those efforts.
Local funding for LEAP 2 hasn’t been completely ruled out despite GovGuam’s spending focus on typhoon recovery.
“I truly hope the Guam Economic Development Authority will move forward with LEAP 2,” said Mary Rhodes, president of the Guam Hotel & Restaurant Association. “I have been part of a couple of meetings since last week with (the Guam Tourism & Travel Association), (Guam Visitors Bureau), restaurants, (the Guam Chamber of Commerce) and others. It would be great to have GEDA consider taking Leap 2 applications now to determine need and get financial updates from companies.”
Rhodes said work needs to continue toward these efforts and the funding should have been set aside.
“Typhoon recovery efforts and funding with the Small Business Administration is a separate and non-related issue to LEAP 2,” she said. “We are working with Guam Department of Labor on the disaster survey to apply for Disaster Unemployment Assistance with the U.S. Department of Labor and funded by Federal Emergency Management Agency.”
Rhodes said businesses require LEAP 2, separate from typhoon recovery aid.
“I know that’s the reason why they put the language ‘subject to available funds,’ but this was supposed to take place before the typhoon and there was already a commitment in a sense,” she added.
Rhodes also encouraged businesses to take advantages of GVB’s Tourism Assistance Program, intended for small businesses that support the tourism industry to get direct relief through grants of up to $25,000 with the goal of getting tours, restaurants and other services up and running.
Tourists are seen walking down Pale San Vitores Road Wednesday, June 14, 2023, in Tumon.
