DOC director sets the record straight about possible “misinformation” about their work

Pago Pago, AMERICAN SAMOA — In an email statement to local news outlets this week, Commerce director Petti T. Matila moved to set the “record straight to avoid misinformation during this challenging time”, following an email request from former American Samoa Chamber of Commerce chair, Ella Gurr, to Lt. Gov. Talauega Eleasalo V. Ale, chair of the COVID-19 Task Force to amend or ease Code Red restrictions on businesses due to possible negative economic impacts that could lead to permanent closures.

Matila acknowledged that she was not copied on Gurr’s email, but as DOC director, she said, “it is deemed appropriate that I correct the misinformation being shared and alluded to by Mrs. Gurr.”

The DOC director’s statement followed a news report late last week about Gurr’s request to Talauega, who is also the Governor’s Authorized Representative (GAR). Her request included data from 2020.

Gurr’s email request on Mar. 3 was sent prior to the governor easing restrictions on Monday this week for business operating hours — extending them from 5a.m. to 6p.m (a 2-hour extension) and allowing gas stations and public transportation to resume normal operating hours.

According to Gurr, who is also a member of the COVID Task Force, in a recent email to Samoa News, she made the request to the Task Force, through its chair, the Lt. Governor, as “just a business owner that was concerned.”

She noted that prior to emailing the Task Force, she and several CoC members had received multiple queries on assistance from many small businesses that were impacted by the Code Red restrictions.

YELP ECONOMIC REPORT

In her email letter to the Task Force, Gurr suggested that American Samoa take advantage of the data on the impact of restrictions on business operating hours. She shared a CNBC news link in 2020 reporting Yelp Economic Average (YEA) data that shows 60% of business closures in the U.S due to COVID-19 are now closed permanently.

(A copy of Gurr’s email letter was shared with Samoa News on Wednesday evening by a local source, who is not affiliated with the Chamber of Commerce or the government.)

In her statement to the media, Matila pointed out that “relevant-data-driven decisions is imperative” and that the YEA report referenced by Gurr was dated September 2020.

Matila noted that the YEA report for the first-three Quarters of 2021 revealed that 85% of businesses temporarily closed during the pandemic reopened and new business openings recorded numbers above pre-pandemic levels.

While the YEA is a benchmark of economic strength in the US, Matila said data collected and surveys conducted by DOC and American Samoa’s Gross Domestic Product (GDP) report gauge the strength of the territory’s economy.

She explained that the number of businesses registered as recorded by DOC increased significantly in 2020 and 2021 and the territory’s GDP grew 4% in 2020 due to new federal CARES Act and the American Rescue Plan Act (ARPA) funds that rolled through the Territory.

“Simply, the observation is that American Samoa was on the opposite side of the COVID-19 impact prior to our current Code Red emergency status,” she said.

 Furthermore, more rounds of stimulus funds — total of $131 million including advance child tax credit — and other federal benefits were given directly to local residents or consumers since 2020, including food stamps, rental assistance with free utilities, which includes internet services — and more.

“The fact of the matter is, millions were injected into the economy since 2020, meaning more purchasing power in the hands of consumers,” the DOC director points out.

She said the territory’s 2020 GDP captures actual data collected in 2020 when the pandemic first started — when business hours were initially restricted and social distancing was enforced.

“We need to be realistic and look at local data to determine the actual impacts here at home for essential versus non-essential businesses,” she said.

And she provided an online site, which lists all local companies that received direct Paycheck Protection Program assistance from the U.S. Small Business Administration. “For transparency purposes” Samoa News checked the online site that was provided — https://www.sba.com/ppp-funded-companies/american-samoa?page=1 and should point out that it is not affiliated with the U.S. Small Business Administration.

Matila “emphasizes the fact that DOC launched a COVID-19 Impact Survey at the beginning of February 2022” and it was shared with the Chamber of Commerce, but “we have yet to get as much feedback as we'd like.”

 “This is the data that we need locally to help justify the unique needs and challenges of our local business community,” she said. “We do not operate based on assumptions or Yelp data.”

“We need local data to support our plea to the feds to reprogram funds as needed. I do want to note that as a federal grantee, we are required to ensure that we do not duplicate benefits using CARES and ARPA funds, which is where program integrity is key in our efforts to ensure we have the right program design to take care of the unmet needs of our local community,” she explained.

She reiterated that “local data is crucial for justification purposes.”

ARPA FUNDS

Gurr suggested that ASG reconsider the rollout and allocation of ARPA funds, and she claimed that only $9 million is accessible to businesses through Small Business Line of Credit (LOC) program and Grant & Loan (G&L) program, with $1million allocated towards administrative costs. 

“With the amount of small businesses impacted and ongoing supply chain issues and now coupled with Ukraine/ Russia situation, more financial support will be needed for the private sector,” Gurr said.

Samoa News notes that the LOC and G&L programs are the DOC’s Business Recovery Capital Program (BRCP), funded with allocation under ARPA.

Matila responded that $5 million for the LOC — maximum $500,000 per borrower — is for businesses like construction companies to acquire materials — e.g. Type 2 Cement — and working capital.  “We've already approved up to $2.5 million in applications for this source of funding,” she revealed.

She also said that $4 million is allocated for the G&L program — maximum is $25,000 grant and maximum is $100,000 for loan — to encourage entrepreneurship and small businesses to be COVID-ready. 

Matila said a 5-member panel will be reviewing these applications very soon, and possibly plan to conduct the pitch presentations virtually.

Applications for both programs are available and accepted online (https://www.doc.as.gov/cslfrf) and by drop-off to our office. 

SSBCI FUNDS

Gurr also questioned the territory’s funding allocation under the State Small Business Credit Initiative (SSBCI) 2.0 program, which Samoa News points out is overseen by the U.S. Treasury Department.

Gurr claims that from her last conversation with the DOC director, only $18 million was available for the first 3 years before a draw down of additional funds can be accessed. 

However, Matila calls Gurr’s reference of $18 million as “inaccurate” saying that DOC does not have $18 million in SSBCI funds at the moment. 

According to Matila, DOC is “waiting for approval of our $56 million in SSBCI 2.0 funds” and said that Gurr was probably mistaken by the Emergency Rental Assistance Program (ERAP) allocation of $18 million.

Matila said Gurr had enquired about the ERAP last year, asking if commercial rental spaces qualify for assistance. “However, by law, ERAP is only for residential rental assistance,” Matila pointed out.

ERAP FUNDS

Gurr suggested that DOC open online access to the application process for ERAP as many in the community are impacted by reduced hours or no work at all. (Samoa News notes that DOC has had the online portal for this funding open for several months now and has also reported on it.)

Matila responded that the online portal (https://www.doc.as.gov/erap) for ERAP, where all tenants and landlords directly apply for assistance, is open.

And that the program pays 3-months in advance of rent with utilities. Internet service is included as a utility cost under program rules.

She revealed that, “Over 200 households have been approved to date, and now moving close to 300 as we continue to receive complete applications through the ERAP portal.”

“We're re-certifying everyone that has received assistance since December 2021, and executing MOUs with landlords using a DocuSign App — commonly used by banks to sign loan documents — to safely acquire e-signatures,” she explained.

 She said that rental assistance checks to landlords were distributed last Friday by using a drive-thru service at the DOC Tafuna satellite office at Lions Park since the majority of landlords live in Tualauta area. 

“Virtual workshops will be conducted soon for those who wish to apply,” she explained.

VIRTUAL OFFICE

Gurr complained that the DOC office is closed due to Code Red and requested that this department should be reclassified as essential services to assist with immediate funding for small businesses impacted by closures. “Need online application capability,” she said.

Samoa News points out that since Code Red was activated some two weeks ago, DOC has posted messages on social media about its virtual office to assist the public.

And this was explained by Matila in her response, saying that DOC has shifted most of its operations virtually and has been putting out public advisories on social media and at the DOC office location — that they can be reached via website (www.doc.as.gov) or by email at [email protected]. 

“The work that needs to be done through DOC is essential not just for businesses, but also for the community at large,” Matila said, noting that DOC had a drill last year for this specific purpose to prepare the department for a possible shutdown from COVID-19. 

She explained that transitioning to operating virtual has been smooth sailing for DOC, “and also because we did have an emergency plan for data plans to e-charge or top-up all staff phones so they can do work from home and [have] virtual meetings as needed.”

In conclusion Matila declared: “We may be on a lockdown, but DOC is not resting either. 

“We continue to find ways to improve and maintain our services to the general public during these challenging times,” she stated.

Gurr said in her email to Samoa News that “although DOC claims they were up working virtually — businesses that tried to apply weren’t able to [apply] because the system was under Code Red restrictions. That is why many businesses reached out to myself and other previous board members.”