By Emmanuel T. Erediano
[email protected]
Variety News Staff
COMMONWEALTH Economic Development Authority Executive Director Derek T. Sasamoto supports Senate Bill 24-25, which would allow CEDA to lend up to $100,000 per applicant.
Authored by Sen. Jude U. Hofschneider, S.B. 24-25, which passed the Senate on Feb. 26, 2026, proposes to increase the loan threshold from $25,000 to $100,000 per applicant. It would also allow the CEDA board to delegate loan-related applications to the executive director for review and approval, up to a maximum of $100,000 per individual loan or loan-guarantee application.
In his letter to Hofschneider, who chairs the Senate Fiscal Affairs Committee, Sasamoto said CEDA strongly supports the bill, noting that the $25,000 lending limit, which has been in place since 1985, is “outdated and does not account for nearly four decades of inflation.”
He said this constraint requires frequent board reviews for loans that, in today’s economic reality, are relatively modest. This results in unnecessary delays for applicants and increased administrative burdens. By raising the threshold to $100,000, Sasamoto said the proposed amendment will streamline CEDA’s loan approval process, reduce the board’s workload, and allow the agency to respond more swiftly to the financial needs of businesses.
Most importantly, he said, it preserves the CEDA board’s oversight for larger loans, ensuring accountability while enhancing operational efficiency.
“We believe this amendment will bolster CEDA’s ability to support economic development across the CNMI, aligning with our mission to foster growth and opportunity,” Sasamoto said. He also commended Hofschneider for introducing “this forward-thinking legislation.”
He added that S.B. 24-25 would provide the CEDA board the ability to extend loan flexibility and efficiency to the executive director to better serve clients.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
