Microloan raises women’s participation in business

Implementation of the Microloan Program by the Commonwealth Development Authority resulted in the increased participation of local women in the business sector, Board Chair John S. Tenorio said yesterday.

Of the 14 microloans sealed by the CNMI government’s lending arm in financial year 2000, six were issued to women-owned businesses, Mr. Tenorio said during the formal closing of additional loans for the program with the U.S. Small Business Administration.

CDA’s ability to improve CNMI women’s participation in the business sector earned for it an award from the Guam-based SBA, placing second to Bank of Hawaii as among the year’s best lenders throughout the Northern Marianas.

Under competition guidelines, a lender earns one point for each loan closed and receives an extra half a point for each loan made to women-owned and veteran-owned businesses.

The bonus points are intended to encourage lending in traditionally underserved markets. The lender with the most points at the end of the fiscal year wins the SBA Lender of the Year title.

Executive Director Marylou S. Ada said CDA’s Microloan Program, implemented through the assistance of SBA, was extended to the Northern Marianas to help entrepreneurs come up with the needed capital to start up a business.

“We are very pleased with our performance for the year. The Microloan Program’s objective is to extend loans and to promote entrepreneurship in traditionally underserved markets. Our performance demonstrates that we were able to do just that,” said Ms. Ada.

She added CDA intends to beef up efforts for the further growth of the Microloan Program in order to consistently provide greater opportunities for borrowers who are unable to meet typical banking guidelines to secure the needed capital to start up a business.

SBA-Guam legal counsel Robert Pearson yesterday signed the documents for $420,000 in additional funds to expand the Microloan Program with Mr. Tenorio and Ms. Ada.

The additional funds would facilitate the expansion of the highly-successful Microloan Program as it will allow the agency to replenish its depleting portfolio for small-scale investors in the Northern Marianas.

The Microloan Program has provided a motivation for the local residents to start up a small business of their own. The number of applicants for the program has tremendously increased since its introduction into the island late last year.

Over $300,000 worth of credit packages have already been approved by the government’s lone lending agency since the Microloan Program was introduced to help stimulate the Commonwealth’s slumping economy by assisting small businessmen obtain fresh and additional capital for either new or existing businesses.