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ASG expects over $10 million in new private capital from small biz initiative

American Samoa anticipates generating just over $100 million in new private capital for local small businesses under the State Small Business Credit Initiative (SSBCI) funding allocation which was designed by the federal government to help states and territories strengthen existing loan and equity programs and/or create new programs that support financing small businesses.

 

The local SSBCI program, called American Samoa Venture Fund (ASVF) — with a $10.5 million federal allocation — has been launched and will provide new capital to small businesses and entrepreneurs to help them grow and create quality jobs in the Territory, according to Commerce Department’s media statement on Wednesday.

 

Small businesses, says DOC, are defined as businesses with 500 or fewer employees. Further, SSBCI funds will primarily be invested in early-stage, technology- and innovation-driven companies that will create skilled jobs and expand the Territory's economy.

 

Gov. Lolo Matalasi Moliga says the success of small businesses — particularly in relevant and targeted cluster areas – is key to American Samoa's economic stabilization and expansion.

 

“Small businesses need capital to succeed. Today, that’s often hard for them to find. This $10.5 million in federal funding is going to support these small companies and entrepreneurs with up to $105 million in new private investment to help them preserve and create jobs for our citizens,” Lolo said.

 

DOC director Keniseli Lafaele said the SSBCI investment would help convince private companies and individuals to invest money through the venture fund. Additionally, it's the first venture capital program solely committed to the territory and its businesses.

 

Advantages to American Samoa's small businesses, according to Lafaele, include access to debt and venture capital financing that may not otherwise be available and flexible and non-bureaucratic resource for funding.

 

Advantages to American Samoa's lenders and sources of private capital include ability to approve a loan that would otherwise be declined; and provides a non-competitor participant on providing financing.

 

DOC provided additional targeted industries for the ASVF, which provides equity investments and convertible debt instruments to emerging American Samoa companies - or companies locating in American Samoa - with perceived long-term growth potential.

 

These industries includes Health Care; Clean Technology; Financial & Professional Services; Homeland Security & Defense; Information Technology; Education Services; Life Sciences; Advanced Manufacturing; Agriculture/Aquaponics; Fisheries; Travel and Tourism; and Construction.

 

For applications, other pertinent forms, and additional information on SSBCI and venture capital financing, please visit www.doc.as.gov or contact SSBCI Manager, Mr. Pat M. Galea'i, at 684.633.5155, ext. 231.