CDA to handle SBDC • Outgoing NMC president says college will implement a similar program

Beginning January 2000, the Commonwealth Development Authority will be handling the program, according to Jack Peters, director of the Guam-based PISBDC.

CDA Board Chair John S. Tenorio welcomed the news, as he noted that the transfer of SBDC ensures that the Northern Marianas will continue to receive federal funding for the program.

Mr. Peters said his office will only work with an organization that will ensure sound fiscal and contractual management while at the same time maintain high quality of service to the people.

He noted that the CDA has contributed a substantial amount in matching funds to provide direct SBDC counseling services two times a month to the islands of Rota and Tinian.

Change in host institutions of the program is nothing unusual as it happens roughly 4 to 8 percent of the SBDC sub-centers, said Jim King, state director of the New York SBDC Network and a member of the ASBDC National Certification Team.

Among the reasons for the change include “lack of performance, non-conformance with SBA requirements and regulations, fiscal management considerations. The purpose of a host change is a business decision to preserve and enhance services to the local small business community,” said Mr. King.

NMC to create similar office

Amid all the controversies surrounding the nonrenewal of contract with NMC to handle the local SBDC, the College vows to look for other federal grants so it can continue running a similar program.

While NMC wants to keep SBDC, outgoing President Agnes M. McPhetres said it is very unfortunate that Mr. Peters has convinced the U.S. Small Business Administration that the College is incapable of handling the program.

“It hurts that he has convinced the regional office that we are rotten apples so we should stay away from the program,” she said.

But Ms. McPhetres believes that CDA is not the appropriate agency to takeover SBDC, citing potential problems stemming from conflict of interest.

One of the components of the SBDC program is to assist people who are getting into business in various ways like drafting a marketing analysis and seeking a loan. Likewise, CDA is also helping local businesses avail of loans either through its own program or acting as a guarantor in case of huge bank loans. Ms. McPhetres feared that such situation would create problems, thus, the program should be handled by the Department of Commerce.

In any case, the CNMI may just end up having two programs — the one supported by Mr. Peters and the other one managed by NMC.

Since January of this year, NMC has not received any reimbursement from PISBDCN for the expenses it has incurred in the local SBDC, Ms. McPhetres said.

The college president also accused Mr. Peters of trying to run the local SBDC through remote control since he does not approve of the current program acting director she has appointed.

During the meeting with the president of the University of Guam, Ms. McPhetres said she apologized to Mr. Peters if she had hurt him even promising to change just so the program would stay with NMC.

“But lo and behold, he told his staff that we went to Guam crawling and kissing his feet,” she added.