The Commonwealth Development Authority has approved its first loan under its Micro Loan program after reestablishing the program with start-up-friendly changes last month.
CDA loan manager Oscar Camacho told Saipan Tribune yesterday that they have approved their first totaling $25,000 for a business that aims to set up a shop along Beach Road before the Garapan Fishing Base heading north.
He said the loan was approved for owners of the “Salbahe” and “Tribes” businesses.
He said the loan amount covers purchase of inventory, space renovations, and some capital.
In May, the CDA board approved program changes to allow “start-up” businesses without credit history and a previous bank denial to borrow amounts up to $3,000. Any loan above $3,000 would require one bank denial. Previously, the program had asked for three.
Camacho said yesterday that CDA wants to be “efficient” and prompt with approving loans but also want to make good loans and “not be hasty” with them.
He said an application was turned in sometime in May. He said CDA replies with a “commitment letter” approving or denying the application ten days after it is found complete.
The applicant then has 90 days to decide to go forward with the application, he said, with a final approval coming the following Friday a decision is made.