
A new avenue for business development in the territory has opened up with the Department of Commerce launch of the State Small Business Credit Initiative. Under the SSBCI, which is funded by the US Treasury, $57 million is being made available for American Samoa.
“This program will stimulate the local economy with loans and equity investments for small businesses and for businesses outside American Samoa that have a direct impact on the local economy,” says a DOC press release.
The American Samoa SSBCI program partners with the Territorial Bank of American Samoa (TBAS) and participating local banks on the mainland for business purposes including startup costs, working capital, business procurement, franchise fees, equipment, inventory, as well as the purchase, construction or renovations of an eligible place of business.
Loans can range from $10,000 to $20 million with a 10-year maximum term of a loan participation.
ASG announced in March that The U.S. Treasury has officially approved the American Samoa State Small Business Credit Initiative (SSBCI) 2.0 program.
The approved programs include a Loan Guarantee Program (LGP), a Collateral Support Program (CSP), a Loan Participation Program (LPP), and an Equity/Venture Capital Program.
The Loan Guarantee Program (LGP) with an allocation of $32.5 million will provide a partial guarantee to support surety bonds and lines of credit. This will help local businesses meet requirements needed to participate in large projects and access the necessary capital for expansion and operational needs.
The Collateral Support Program (CSP) which is receiving $5.7 million aims to increase access to commercial credit for small businesses by providing additional security for loans or credit facilities.
The Loan Participation Program with an allocation of $8.6 million provides risk diversification for lenders and increases access to commercial credit for small businesses by participating in lending transactions.
The Equity/Venture Capital Program which is receiving $10.3 million will make direct investments in small businesses and projects.
Those interested in the SSBCI program, are invited to schedule an appointment with the American Samoa – Small Business Development Center (AS-SBDC) at (684) 256-7232 or email info@as-sbdc.net. Or visit the American Samoa Department of Commerce SSBCI website at www.doc.as.gov/ssbci.