Gov. Eloy S. Inos and Lt. Gov. Jude U. Hosfschneider met with David Rixter from the U.S. Treasury and Paul Brown of Michigan Development Authority yesterday. Their visit was an attestation of U.S. Treasury's support for the CNMI State Small Business Credit Initiative. Commerce deputy secretary Ivan Blanco, CDA executive director Manuel Sablan and Oscar Camacho also joined the visiting officials. Rixter and Brown were also able to meet with bank officials to promote the two lending programs under the SSBCI:
-Loan Purchase Participation Program: The LPPP is designed to assist lenders and borrowers in financing diversification projects. The program enables companies to acquire necessary financing that might otherwise be unavailable due to a cash flow shortage according to the lender’s analysis. The LPPP will participate on loans with lenders to pursue this goal for approved projects.
-Collateral Support Program: The CSP enables small businesses to acquire necessary financing that might otherwise be unavailable due to collateral shortfall according to the lender’s analysis. The CSP supplies pledged cash collateral accounts to lenders to achieve this goal for approved projects.
Rixter further encouraged bank officials that the two programs are provided to all states and territories to spur job growth, business manufacturing, expansion, start-ups, and so forth.
“This is a program that has been in the works over a year now, and we appreciate U.S. Treasury's visit to promote it," said Inos. "I ask that the lending institutions take advantage of this program in order to help our local entrepreneurs who may not have the cash flow, but are otherwise qualified borrowers." (Office of the Governor)