THE value of the loans extended by the Commonwealth Development Authority has increased by 106 percent in the first quarter of calendar year 2002 compared to the same period in 2001, the latest data from the Department of Commerce showed.
In its CNMI Quarterly Economic Indicators report, Commerce said the value of loans stood at $108,389 between January and March this year.
This marked a 106 percent increase from the $52,500 total loans made in the first quarter of 2001.
These consist of “microloans” which give each borrower a maximum of $35,000.
“We are receiving lots of applications, but borrowers nowadays are more careful, more organized and are watching the bottomline,” said CDA Executive Director Mary Lou Ada in an interview yesterday.
Ada said these loans were extended mostly to existing small businesses.
“They want to diversify or expand their business,” said Ada.
The $108,389 worth of loans from CDA, however, remain much lower than the figures of the previous quarters.
During the third quarter of 2000, the loans stood at $60,000, and at $338,000 in the fourth quarter.
The quarterly figures in 2001 were: $52,500 in the first quarter; $183,000 in the second quarter; $150,000 in the third quarter; and $114,800 in the fourth quarter.
The sharp drop in total CDA loans reflected the moratorium on direct and guaranteed loans effective Aug. 2000.
Ada said each of these two loans used to give a maximum of $5 million to each borrower.
“We put a moratorium on these two types of loans because of the economic conditions. An increasing number of businesses are borrowing money and we could not keep up with the demand,” Ada said.
CDA said it had strengthened its outreach programs to help existing and prospective entrepreneurs in maintaining or putting up a business amid the current tough economic conditions.
“These workshops have helped them a lot, including how to make their business profitable,” Ada said.
