It was explained by Director of Commerce Petti Matila during her department’s budget hearing that in order for small businesses to receive loans from the State Small Business Credit Initiative (SSBCI), they must first submit a loan application to a bank of their choice.
American Samoa was awarded $57 million for the SSBCI program.
Matila said the application goes through the bank’s usual loan process before it comes to DOC for review.
SSBCI will loan 50% of the total loan. So if an applicant applies for a $5 million loan at the Territorial Bank of American Samoa, TBAS can fund $2.5 million and SSBCI can be able to loan the remaining $2.5 million.
McDonald said SSBCI can loan up to $10 million.
It was explained that applicants can receive SSBCI funding if they apply for loans from off-island banks like Bank of Hawaii, Navy Federal Credit Union and Central Pacific, or other bank of the applicants choice.
The SSBCI cannot fund 100% of the loan. It can only provide up to 50%.
