CoC to ASG — please look at lifting current biz-hour restrictions

Pago Pago, AMERICAN SAMOA — The American Samoa Chamber of Commerce will propose to ASG to consider, among other things, lifting current business hours operation restrictions, to lessen the financial impact on businesses, while at the same time, maintaining the social distancing preventive measure of the COVID-19 pandemic.

In an email letter Tuesday night, Chamber chairwoman Ella Gurr provided to Chamber members, an update on the behind-the-scene work that it has been doing to assist local businesses including working with the local banks for a relief program administered by the US Small Business Administration (SBA).

PLANNED PROPOSAL

“Current economic impact is definitely felt amongst the different industries, some more than others. Chamber is still trying to work with ASG — at the moment with federal funding being delayed and local banks not lending has made it difficult for businesses to sustain operation,” said Gurr.

She outlined specific issues that the Chamber “will propose to ASG to consider.” Top of the list of issues, “Lessening the financial impact on businesses by opening up the market” by lifting the 6a.m to 6p.m business hours operation restriction but at the same time allowing businesses to promote social distancing and sanitation onsite.

Another proposal is a moratorium/ relief for industries that are greatly impacted — such as hotels, restaurants, gas station, flower shops etc.

Additionally, introduce loans with low interest rates at ASG owned Development Bank of American Samoa (DBAS) and Territorial Bank of American Samoa (TBAS) to allow access to capital for small businesses due to delays on federal funding programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).

Furthermore, for ASG to pay its bills to the private sector and to consider other options for businesses that aren't seeking loans due to the uncertainty of the economy.

“Due to the uncertainty of the economic impact of the COVID-19 pandemic we encourage our businesses to please have a financial contingency plan in place for your business,” said Gurr.

Samoa News notes that the SBA administers the EIDL, which is applied to online with the federal agency (www.sba.gov and also other information) and the PPP, which is applied through a financial institution, that is an authorized SBA lender.  

FINANCIAL INSTITUTIONS

Gurr also provided an update on the Chamber’s work with the local financial institutions. She explained that ANZ Amerika Samoa Bank — a lending partner of SBA — has almost completed installing the new electronic portal to their system to upload applications.

“Once completed the turnaround time should be shortened,” she said, adding that ANZ, in the meantime, is willing to accept applications and process them manually.
However, there is no definite timeline for this manual process and ANZ asks for everyone's patience, she said and attached the ANZ checklist of items needed for the application.

“Chamber is working with the banks to make sure procedures are streamlined for easier access for capital as that is the objective of these expedited loans to retain our employees,” she said.

She also explained that TBAS has applied to be an SBA lender and is awaiting approval status. Additionally, a few businesses have already submitted applications to TBAS, while waiting for the bank to be approved.

At the DBAS, it currently has the Boomerang Loan programs in which businesses can access up to $200,000 in capital, said Gurr who provided a contact person at DBAS.

For banks based in the US, she asked that businesses consider applying for the PPP with an off island lender “if your business has an already existing relationship with the bank.”

She says some Chamber members reported that they had applied with Wells Fargo, Bank of Hawaii and Paypal. She asked members to provide any updates on their successes with off island landers, so the information can be shared with other members.

EIDL PROGRAM

Regarding the EIDL program, Gurr hopes that members had a chance to apply online with SBA. She explained that the initial EIDL application process was difficult to complete and eventually the site began to crash.

SBA then simplified and changed the EIDL application process and this enabled many to apply for the $10,000 grant from EIDL. “This grant is on a first come basis,” she said. “Businesses please do not be discouraged if you haven't received any updates from SBA.”

Early this week, ASG Commerce Department announced that it was providing technical assistance to business owners who do not have access to the internet or are having difficulty in completing the EIDL application. For more information call DOC at 633-5155.

EDITOR'S NOTE REGARDING FUNDING

The government’s lending program for small businesses is on hold. The Small Business Administration said Thursday that it reached the $349 billion lending limit for the program, after approving nearly 1.7 million loans.

Thousands of small business owners whose loans have not yet been processed must now wait for Congress to approve a Trump administration request for another $250 billion for the program. Lawmakers have been haggling over whether to extend the program as it stands now, or whether to add provisions that, among other things, would help minority businesses. It’s unclear when they might reach an agreement that would allow loan approvals to continue. Click to read complete story.