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Gov earmarks $10M in ARPA funding to support small businesses

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compiled by Samoa News staff

Pago Pago, AMERICAN SAMOA — From the $479.1million in Coronavirus State and Local Fiscal Recovery Funds (SLFR) allocated for the territory through the American Rescue Plan Act (ARPA) — Gov Lemanu Peleti Mauga is dedicating $10 million to support local businesses.

The American Samoa Department of Commerce announced in a press release last week Friday the beginning of its 10-day public engagement period for the community-at-large, especially local businesses that have been impacted by the Coronavirus pandemic.

Better known as the American Samoa COVID-19 Business Recovery Capital Program (BRCP), the overall goal is to help small businesses across the territory recover from the adverse impacts of the global pandemic.

The governor “recognizes the need for improved access to capital, especially now, as our private sector works to respond to the many challenges brought about by our current state of public health emergency,” said Department of Commerce Director Petti Matila. “This program, which will be rolled out in two phases, will provide immediate support to local businesses and help support our COVID- 19 economic recovery efforts.”

The BRCP will first introduce the Line of Credit (LOC) program, administered in partnership with the Territorial Bank of American Samoa (TBAS). The LOC program is aimed at providing immediate credit support to small businesses that have been directly impacted by COVID-19. Supply chain delays, for example, have been exasperated by challenges caused by the pandemic, creating local shortages in goods such as building materials for critical infrastructure and other supplies. The LOC will then be followed by the implementation of the BRCP Loan & Grant program, which is scheduled to launch in early 2022.

[Samoa News points out that its many missed print issues during the pandemic is a result of supply chain delays as well as our newsprint supplier discontinuing that portion of its business.]

The US Treasury issued an Interim Final Rule (IFR) regarding ARPA, which identifies a non-exclusive list of ARPA fund uses. Small businesses that apply will be required to demonstrate how their proposals support the territory’s response and/or recovery from the COVID-19 pandemic. Tourism, travel, and hospitality sectors and other impacted industries will be prioritized in accordance with the intent of the ARP Act.

The Public Comment period regarding this new small business program began last week Friday. A copy of the plan will be available for public viewing and comments at the ASDOC main office in the AP Lutali Executive Office Building, 2nd Floor, in Utulei and online at www.doc.as.gov. Public comments must be received in by the ASDOC in writing no later than 4pm on Monday, December 13, 2021.

For more information, contact DOC at 633-5155 or email DOC at info@doc.as.gov.

(Source: DOC press release)