THE CNMI Department of Commerce will soon receive $18 million of the $57 million that the U.S. Treasury has allocated for the local State Small Business Credit Initiative or SSBCI Program, according to the department’s economic development officer, Kioshi Cody.
He was the Rotary Club of Saipan’s guest speaker during its weekly luncheon meeting at the Hyatt Regency Saipan Ballroom on Tuesday.
Funded by the American Rescue Plan Act of 2021, the SSBCI, which was originally established in 2010, will provide a total of $10 billion to the states, the District of Columbia, the territories and Tribal governments so they can expand access to capital for small businesses.
Cody said the $57 million for the CNMI is for the credit initiative that Commerce will implement in the next 10 years.
He said the total amount will be given to the CNMI in three tranches. Commerce will receive anytime soon the first tranche of funding in the amount of $18 million. The next $18 million will be available after three years, and the rest of the total amount will be available after six years.
“I feel like we are at 99% approved,” Cody said. “Once Commerce gets 100% approved, the first $18 million will be wired to the department which will have 30 days to start ‘deploying’ the loan program. So there’s no sitting on this money and taking our time,” Cody added.
Commerce will be a responsible “steward” of the $57 million over the next 10 years, Cody said, adding that among the key documents they had to provide the U.S. Treasury was the CNMI government’s 2020 single audit.
If the U.S. Treasury has any concerns, Commerce will be informed by the end of this week, Cody said.
He said Commerce is “really excited” about the program because the CNMI is a “big underserved area so almost everyone is going to be allowed to apply.”
He added, “There’s going to be no citizenship requirement for this program, and Commerce will have to disseminate information in the different languages spoken in the CNMI.”
According to the U.S. Treasury website, the SSBCI program provides funding for (1) credit and investment programs for existing small businesses and start-ups, and (2) technical assistance to small businesses.
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Department of Commerce economic development officer Kioshi Cody, center, poses for a photo with Rotary Club of Saipan President Wendell Posadas, second left, President-elect Irene Holl, left, Secretary Joann Aquino, second right, and Vice President Jessy Loomis, right, during the club’s weekly luncheon meeting at the Hyatt Regency Saipan Ballroom on Tuesday.
