Transfer would ensure proper use of funds

Commonwealth Development Authority Board Chairman John S. Tenorio yesterday said he is seeking control of the Small Business Development Center from the Northern Marianas College to make sure that federal grants are properly handled.

CDA’s concern over the local SBDC stemmed from the recent findings of an investigation that the funds given to the center is not efficiently managed by the College. Instead of losing the federal grant as much as $200,000 a year, Tenorio said, he would rather takeover management of SBDC from NMC.

The Association of Small Business Development Center National Certification Committee, through James King, had suggested that immediate steps be taken so that NMC-SBDC retains federal funding from the entire Pacific Islands SBDC Network.

NMC has been informed that the current contract establishing an SBDC Center in the CNMI will no longer be renewed when it expires on Dec. 31, 1999.

According to Tenorio, he suggested the turnover of SBDC to CDA when he met with Gov. Pedro P. Tenorio and representatives of the U.S. Small Business Administration, ASBDC National Certification Committee, and the PISBDCN on Oct. 29, 1999.

During the meeting, the governor expressed his concern on the possibility that the CNMI may lose federal funds without making commitment as to which institution should handle the program.

When the expending authority is given to CDA, Tenorio assured that the money will go directly to the program and not diverted for other purposes.

In expressing his disappointment over the management of SBDC, Tenorio said he will implement changes when CDA takes control of the Center. “If NMC wants to work with CDA, then they would have to sit down with us in working out the policy to make sure that the funds are not abused,” he said.

The transfer of administrative control of SBDC from NMC to CDA was reiterated by the agency’s ex-director, Jack Peters, in a letter sent to the governor last month.

Peters asked the governor to appoint CDA as the host of SBDC for the CNMI because it is in charge of the economic development of the Northern Marianas.

As the newly-appointed CNMI intermediary for the SBA Microloan Program, CDA is already recognized by the U.S. Small Business Administration as highly qualified to administer SBA-funded programs.

SBDC, located at NMC’s Saipan campus, has been at the forefront of economic activities since its inception in 1989. The BDC network encompasses the Business Incubator, the Graduate Internship Program, the Business Assistance Services Program, and the Education & Training Program.