The Commonwealth Development Authority released $1.3 million worth of loans in fiscal year 2012, according to comptroller Danny Militante.
Militante, in his report to the Development Corporation Division during Thursday's meeting, said the amount was for seven different loan applications approved last fiscal year and does not include the $600,000 issued to Arctic Circle.
As of Sept. 30, loan fund balance is at $1.4 million, he said.
Militante noted that there are amounts that CDA has already committed but not yet disbursed, including the $36,000 for Blue Continent Communications and $28,000 in Brownfields fund.
On the revenue side, executive director Manuel Sablan said performing loans last fiscal year generated $375,000, while the debt relief program generated $352,000.
“Despite the fact that it's a low interest rate, it's [debt relief program] generating cash flow,” he added.
Meanwhile, Militante said CDA expects revenue collection to reach $410,000 in fiscal year 2013, which is based on the actual revenue received last fiscal year 2011.
“Our projection for FY 2011 is $350,000 but we received $410,000 in principal and miscellaneous repayments, which is $60,000 more than our original projection,” he said.
Militante expressed confidence that they can surpass the projected collection given other sources of revenue for the new fiscal year.
He said the agency forecasts spending at $680,000 instead of the approved $800,000 budget, generating $120,000 in savings, which include vacant positions that CDA decided not to fill, leading to reduced employer contribution obligations.
Militante also projects $1.1 million in properties to be sold, but noted that the agency will not get the actual cash right away as some of the properties end up in lease purchase.
When asked about the agency's fallback plan in the event collections do not add up, Militante said the agency can rely on the State Small Business Credit Initiative program, which gives out loans and stimulate the local economy.
“By the time the program ends, then we have enough again to loan out for businesses,” he said.
Militante added that CDA will continue with its cost-cutting measures to bridge the gap between revenue and expense and eventually eliminate the gap.