Federal SSBCI Initiative funds programs giving access to capital for small businesses

Pago Pago, AMERICAN SAMOA — American Samoa has proposed four programs for funding with its share of the State Small Business Credit Initiative (SSBCI) funds through the federal American Rescue Plan Act, according to the latest public information on the US Treasury Department’s website.

Gov. Lemanu P. S Mauga in his State of the Territory Comprehensive Report to lawmakers in January this year said that American Samoa has been allocated $56 million from the SSBCI administered by the U.S Treasury, which is reviewing the territory’s proposed programs.

SSBCI public information shows that the ASG’s Commerce Department is the designated agency for this federal funding and has proposed four programs, which are pending approval by U.S Treasury.

The programs are “AS Co-Investment Fund — or Equity Capital Program Funds; Collateral Support Program; Loan Participation Program; and Loan Guarantee Program.

No detailed information is available publicly yet on the four programs and Samoa News understands that some details will made public once American Samoa’s plan is approved by US Treasury — which has given summaries of programs already approved for other states and territories.

According to the U.S Treasury, the SSBCI, reauthorized and expanded by ARPA, provides nearly $10 billion to states, territories, D.C., and Tribal governments for investments in small businesses to expand access to capital, to promote economic resiliency, and to create new jobs and economic opportunity — especially in underserved communities still reeling from the effects of the pandemic.

Additionally, SSBCI will — among other things — expand access to capital for small businesses and underserved entrepreneurs; and support innovative approaches to catalyze small business growth. Furthermore, SSBCI has been implemented with an eye towards supporting the most vulnerable businesses and underserved business owners.

Meanwhile, American Samoa is one of the five U.S jurisdictions cited in a federal report of how state/local government entities are investing Coronavirus ‘State and Local Fiscal Recovery Funds’ (SLFRF) in infrastructure projects that support expanded access to high-speed internet and clean water.

“American Samoa budgeted $10 million for broadband development as the pandemic made clear that remote work, distance learning, and telehealth are essential services,” according to a summary in the U.S Treasury report released yesterday, marking the second anniversary of the American Rescue Plan Act (ARPA).

“The territory will work with local internet service providers to support the delivery of internet service that reliably meets or exceeds symmetrical upload and download speeds of 100 mbps,” according to the report, which provides new data — nationally, — illustrating the extent to which this funding supported both immediate pandemic recovery and long-term economic growth. (The 26-page report is online at: www.treasury.gov)

In January this year, ASG’s Commerce Department — the ASG designated agency for this funding — announced it had awarded $9.5 million in ARPA funds under “Broadband iNEI Grants”, for three projects to support the territory’s efforts to respond to and prepare for future public health emergencies like the COVID-19 pandemic.

Public documents show that of the $10 million allocated for the project, 5% or $500,000 is for administrative costs.

The three projects funded:

•           Manu’a Broadband Continuity: ASTCA was awarded $2.8 million to support the immediate repairs and upgraders to the submarine fiber optic cable. The projects will restore services to the outer islands and add protection to the undersea cables.

•           5G Network Upgrade: ASTCA gets $3.35 million to support the deployment of a 5G network to provide internet speeds of 100/100 Mbps to all residents.

•           5G Network Upgrade: BlueSky awarded $3.35 million to support the deployment of a 5G network to provide internet speeds of 100/100 Mbps to all residents.