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SBA OK’s loans for small businessmen • CDA Chair Tenorio says money will benefit small businesses
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Posted on Nov 01 1999
In a move to infuse more capital into the island economy, the U.S. Small Business Administration has loaned some $330,000 to the Commonwealth Development Authority to help small businesses cope with economic difficulties.
SBA, which usually provides assistance only in times of disaster, has expanded its portfolio through a Microloan Program. CDA will be able to lend money to various small businesses on the island by as much as $25,000 each.
According to Ken Lujan, SBA Guam branch manager, CDA is the first SBA microlender in the entire Western Pacific. The agency is studying the possibility of expanding in other Micronesian islands.
“We certainly look forward to more opportunities in our region to establish SBA microloan intermediary lenders so that all of our communities can benefit as much as the CNMI can,” he said.
CDA has been working hard to forge this partnership with SBA as part of the CNMI government’s commitment to assist local businesses survive the recession, said board chairman Juan S. Tenorio.
“Our program really aims to serve very small businesses which tend to be overlooked in the traditional credit markets. We hope to see more microlending activity through our friends at CDA so that the economy and the people of the CNMI benefit fully,” Lujan said.
He assured Gov. Pedro P. Tenorio that SBA will continue to help CDA, the only agency that provides funding service to small businesses at a reasonable rate.
The governor expressed his appreciation to the loan program of SBA and CDA which he said came at a time when people are in dire need for financial assistance in light of the economic crunch.
CDA Executive Director Marylou Ada said the program ensures a number of benefits to the CNMI, which include creation of new businesses, expansion of existing ones, creation of jobs, broadening o the CNMI’s tax base and the diversification of the economy.
