CDA loan manager Oscar Camacho said, “We have now over 43 [borrowers] in the debt relief [program], and they are availing of the 2 percent interest rate with extended terms.”
CDA is looking at increasing this number of borrowers in the program. “I am hoping that we can transfer another 30-40 [borrowers] within the next couple of years,” Camacho said.
He approximates that the total number of loans their agency is looking at transferring from the Development Corporation Division “amounts to roughly about $8 million to $10 million.”
Some of these loans are either buy-back loans from banks or directly from CDA. “We are hoping that we can work with those clients,” Camacho said.
CDA Executive Director Manuel A. Sablan said, “We try to work with the clients as much as possible to bring them into debt relief.”
For Sablan, auctioning off properties is the last resort; however, they put emphasis on the debt relief program as much as possible.
The debt relief program is helping the borrowers settle their loans and it also aids CDA in preserving its core principal.
According to Sablan, when they give a dollar of loan, they try to get a dollar back —preservation of the principal.
He said they just have to make sure they move in that direction.
Camacho said 40 percent of the total $30 million in loans are good loans.
This total, he said, does not include $8 million in judgment loans.
Subtracting $12 million loans from the total $30 million, CDA is looking at moving from $8 million to $10 million loans to the debt relief program.
The remainder, he said, may be difficult to collect as the business has closed down and payment could not be obtained.
CDA recently approved close to $90,000 in new loans to two business owners: $25,000 for a mobile ice cream business and over $60,000 for a trike business.
Relocation of office
CDA has yet to make a decision on the proposed relocation of its office.
Sablan said they are still looking at various options.
“What we are trying to do is to look at various options available to us and present these options to the board,” he added.
He said no notices have been issued so far as they study their options.
Variety earlier reported that the agency pays about $6,000 monthly in lease for the two-story Waki Building on Middle Road.
