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SBA officials discuss business possibilities for NMI
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Posted on May 10 2000
Top officials of the United States Small Business Administration discussed business potentials of the Northern Marianas in separate meetings with Gov. Pedro P. Tenorio and some members of the 12th CNMI Legislature yesterday.
The meeting also touched on other areas where the federally-funded SBA can be of help in the Commonwealth government’s efforts to revitalize the island’s economic and business activities.
One particular area is the establishment of the Microloan Program under the Commonwealth Development Authority which assists indigenous individuals put up their own business through a loan package of up to $25,000.
CDA officials are asking SBA for additional lending capital under the Microloan Program amid numerous applications now pending before the development authority.
Board Chair John S. Tenorio said CDA’s hands are currently tied to act on the pending Microloan applications since the initial $330,000 fund obtained through a loan from SBA had all been lent out.
CDA has a pending application for additional $420,000 lending capital from SBA for the Microloan Program, which caters to clientele underserved by traditional lending institutions.
The requested amount is the balance of the maximum $750,000 that may be borrowed by an intermediary lender, such as the development authority, from SBA during the first year of participation.
The Microloan Program was launched October last year to help stimulate the Commonwealth’s slumping economy by assisting small businessmen obtain fresh and additional capital for either new or existing businesses.
The Microloan Program is expected to offshoot the slowdown in lending activities undertaken by private commercial banks due to economic downturn which virtually dampened capabilities by borrowers to repay loans.
At the same time, CDA Executive Director Mary Lou S. Ada also said the meeting between U.S.-SBA Regional Administrator Viola Canales, along with Guam Branch Manager Kenneth Lujan, and CNMI officials focused on other SBA-funded programs that may help in the island’s economic recovery.
