This legislation, known as the Territorial SBA Loan Guaranty Adjustment Act of 2026, aims to enhance support for small businesses in U.S. territories. It amends the Small Business Act to significantly increase the Small Business Administration's (SBA) participation in loan guarantees for these specific businesses. Under the new provisions, the SBA will guarantee 90 percent of loans made to a "covered territory business" on a deferred basis. This higher guarantee percentage is intended to encourage lending to and stimulate economic activity within these territories. However, this increased participation rate does not apply to certain existing loan programs or pilot programs under the Small Business Act.