The federally funded State Small Business Credit Initiative for which American Samoa was awarded $10 million in the last administration is going through another make over it’s fourth from the time that the first application was submitted.
The SSBCI was one of the programs made available to states and territories under the Reinvestment and Recovery Act and its primary goal was to stimulate economic development.
American Samoa has received $3.5 million of the grant award from US Treasury but after three attempts to design a program that meets the federal requirements and financial resources available to local entrepreneurs, the program has not been able to provide start up or expansion capital to actual businesses.
Director of the Department of Commerce, which administers the SSBCI program.
Keniseli Lafaele says they’ve had to change their partners because their methods are not in tune with the local situation and they are too far away.
In January of last year ASG announced a multi-million dollar venture capital program, with off island companies In Tek and Diamond Venture Fund. It was also announced that the American Samoa Venture fund;’ s investment priorities were Healthcare/Medical; Air and Sea transportation; Fisheries; Agricultural; Eco-tourism; and Manufacturing.
Three local ventures including a mall to be built in Pago Pago, a vegetable farm in Tafuna and alternative energy business had been given the green light to receive financing.
The DOC Director says a new application has been submitted to US treasury and it should be going through review this week. he says locals with expertise in venture capital funds and investment are being proposed in the new application.
Asked about the businesses which were cleared for SSBCI funding , Lafaele says if the new application is approved they would have to go through the review process again.
As for the $3.5 million which was drawn down from American Samoa’s $10 million award under the SSBCI program, Lafaele says it’s safe in a Zion Bank account.
In the summary of the Proposed Fiscal 2017 budget for 2017 it’s mentioned that the State Small Business Credit Initiative Program will be fully operational by the end of this year.
