#1MADE IN GUAM "Invest in Guam" FOINT Guam Economic Development Authority September 16, 2015 America in Asia GEDA GUAM ECONOMIC DEVELOPMENT AUTHORITY#2America in Asia GEDA QUAM ECONOMIC DEVELOPMENT AUTHORITY CELEBRATING 50 YEARS 1965 2015#3MADE IN GUAM Vladivostock About GEDA 3.5 HOURS Japan South Korea China 4. HOURS 3 HOURS Hong Kong Taiwan 3 4 HOURS HOURS Philippines HOURS GUAM 5 HOURS United States 12 HOURS 8 Hawaii HOURS Australia Mission: To develop a sound and sustainable economy through innovative programs that preserve and promote local culture, economic opportunities and quality of life. GEDA is a public corporation of the government of Guam tasked with fostering the growth and development of the local economy. GEDA oversees various programs: • • Qualifying Certificate (QC) Loan Programs (GDFA, SSBCI) Guam Product Seal 3 GEDA DEVEESAMISRITY#4MADE IN GUAM Investor Incentives Qualifying Certificate Program The Government of Guam, through GEDA, is authorized by law to allow tax rebates on the following eligible industries to qualified investors. 1. Green Technology (Energy Efficiency, Renewable Energy and Environmental Cleanup) 2. The manufacture, distribution and sale of non-petroleum based fuels. 3. Agriculture Services (Agriculture, Aquaculture, Mariculture) 4. Tourism 5. Improvement of real property by constructing and selling affordable homes. 6. Recycling All potential applicants go through a thorough application process. Governor is the final signatory on a QC. Since the tax incentive's inception in 1965, the QC Program has spurred significant investment in Guam 4 GEDA DEVEEGANORITT#5MADE IN GUAM Investor Incentives Special Hotel Qualifying Certificate In response to the demand and anticipated growth of Guam's tourism industry, the Special Hotel Qualifying Certificate was created under Public Law 32-233 specifically for the development of one thousand six hundred (1,600) new hotel rooms by the year 2020. Beneficiaries are allowed a tax rebate, exemption and abatement in an amount equal to ten percent (10%) of their total construction costs, which can be applied by the developer, at their discretion, to the following taxes: • • Up to 50% Unpledged Business Privilege Tax for twenty (20) years. Up to 75% Income Tax Rebate for twenty (20) years. Up to 100% Real Property Tax Abatement for ten (10) years on property utilized by the beneficiary for activities stated in the QC. Up to 100% of Use Tax Exemption with respect to the property used to construct, furnish and equip the new facility construction or substantial expansion of an existing building. The Special Hotel Qualifying Certificate shall remain in effect until the one of the following conditions are met: . Five (5) years from the laws implementation; 1,600 hotel rooms have been committed to be built; . or A China Visa Waiver or China Visa Parole declaration has been approved for Guam. 5 GEDA DEVEESAMISRITY#6MADE IN GUAM Investor Incentives EB-5 Investor Visa ■ The EB-5 Investor Category allows qualified applicants to obtain lawful Permanent Resident Status (Green Cards) through investment in a U.S. enterprise. ■ Ten thousand (10,000) Immigrant Visas are available each year to foreign investors establishing a "new commercial enterprise" or is actively in the process of investing in the enterprise in Guam. ■ Minimum investment in Guam is $1,000,000 (possible change) Enterprise must create at least 10 full-time jobs for U.S. citizens, permanent residents, exclusive of Investor's spouse and children. ■ When the Investor Visa Application is approved, the Investor and his/her spouse and children under 21 years of age receive conditional Permanent Residence for a two-year period Investment + Job Creation = Green Card TURUSETED STATES TELEATH 4019931771A + 6 Amprice in. GEDA DEVEESAMISRITY#7MADE IN GUAM GEDA Loan Programs Guam Development Fund Act (GDFA) The Guam Development Fund Act Loan Program was created to provide financial assistance through loans and loan guarantees to private enterprises and industries. It is geared toward businesses that engage and support activities in the areas of Agriculture, Fishing, Manufacturing, Tourism, and their support industries. • . • Program is geared towards start-ups and existing businesses Funds can be used for acquisitions of long-term fixed assets, working capital and the purchase of supplies and inventory Loan amount and terms determined based on application review 7 America in GEDA DEVEESAMISRITY#8MADE IN GUAM GEDA Loan Programs State Small Business Credit Initiative (SSBCI) SSBCI is a Federal program administered by the Department of the Treasury implemented to strengthen state programs that support private financing to small businesses and small manufacturers. GEDA is the state agency that administers the program on Guam, in conjunction with private banks. . · • • Provides lending to small businesses and manufacturers that are not getting the loans or investments they need to expand and create jobs. GEDA has established a partnership with banks and credit unions to administer loan. Participating banks and credit unions will process loan applications using their individual underwriting process. Loan funds can be used for business operations including start-up costs, working capital, business procurement, franchise fees, equipment, inventory, and the purchase of construction, renovation or improvements of an eligible place of business. GEDA will guarantee up to 75% of a loan, not to exceed $500,000. 8 Amprice in. GEDA DEVEESAMISRITY#9MADE IN GUAM Useful Guam Websites Economic Information GEDA: www.investguam.com Guam Chamber of Commerce: www.guamchamber.com.gu Visitor Industry Guam Visitor's Bureau: www.visitguam.org Guam Hotel & Restaurant Association: www.ghra.com Financial Information Government of Guam: www.admin.gov.gu Office of the Public Auditor: www.guamopa.com Guam Autonomous Agency Issuers Guam Power Authority: www.guampowerauthority.com Guam International Airport Authority: www.guamairport.com Guam Waterworks Authority: www.guamwaterworks.org ■ Department of Public Works www.guamtransportationprogram.com 9 Ampries GEDA DEVEESAMISRITY#10MADE IN GUAM Contact Us Guam Economic Development Authority 590 South Marine Corps Drive, ITC Bldg., Suite 511 Tamuning, Guam 96913 Telephone: 671-647-4332 Facsimile: 671-649-4146 Email: [email protected] Web: www.investquam.com 1 Amerias in GEDA DEVEEGANORITT#11Si Yu'os Ma'ase!