{"id":31111,"date":"2014-03-31T15:41:45","date_gmt":"2014-03-31T07:41:45","guid":{"rendered":"http:\/\/tribune.ctsi-logistics.com\/?p=31111"},"modified":"2014-03-31T15:41:45","modified_gmt":"2014-03-31T07:41:45","slug":"cda-loan-collections-total-450000-just-5-months","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/cda-loan-collections-total-450000-just-5-months\/","title":{"rendered":"CDA loan collections total $450,000 in just 5 months"},"content":{"rendered":"

The Commonwealth Development Authority collected nearly half a million dollars from its outstanding loans, an amount the agency described as still \u201cwithin range\u201d of previous years\u2019 collections.<\/span>
\nCDA comptroller Donnie Militante disclosed to Saipan Tribune that from October 2013 through February 2014, the authority\u2019s collections from all its loan programs totaled over $450,000.<\/p>\n

On a monthly basis, CDA collected about $80,000 on average. This figure, however, may significantly increase once proceeds from auction properties are factored in.<\/p>\n

\u201cThe collection figure is still within range. But this usually increases when auction proceeds come in,\u201d he told Saipan Tribune.<\/p>\n

As of January, CDA has 54 \u201cactive\u201d borrowers but this number varies from month to month, Militante said.<\/p>\n

According to CDA executive director Manuel Sablan, the moratorium on the loan program, which was implemented since early 2012, remains in effect.<\/p>\n

As to when this will be lifted, Sablan said: \u201cThe board can always lift the moratorium either partially or fully. But right now, they ask us [the management] to explore other angles so that we would be able to accommodate some of the new loans.\u201d<\/p>\n

The high delinquency rate on loans was one of the factors that led to the loan program\u2019s suspension.<\/p>\n

Sablan hinted that the moratorium on CDA loan program will stay for awhile as the agency is aggressively pushing two initiatives to help new and existing borrowers: the Small Business Credit Initiative Program and the Microloan Guaranteed Program.<\/p>\n

\u201cThe SBCDI program is moving now and we\u2019re in the process of finalizing details of our proposed microloan guaranteed loan program, which will be further discussed at the next board meeting,\u201d said Sablan.<\/p>\n

He said that both programs offer better \u201carrangements\u201d that are beneficial to borrowers. \u201cThere\u2019s nothing that prevent borrowers from making loans because\u2014despite the moratorium\u2014there are these programs especially designed to help them.\u201d<\/p>\n

The new Small Business Credit Initiative Program has been awarded $13 million in funds by the U.S. Treasury and has already made available over $4 million to CNMI borrowers in its first year.<\/p>\n

Under the SBCI program, applications are submitted directly to banks, which will decide on the loan proposal. CDA and the Department of Commerce will serve as support system for applicants in terms of trainings and other assistance.<\/p>\n

In February this year, CDA also unveiled its plan to open a \u201cMicroloan Guaranteed Program.\u201d Under the new program, CDA will work with commercial banks and provide 80 percent guarantee on short-term loans specific to small businesses, fishermen, and farmers, among other borrowers.<\/p>\n

Based on the initial proposal presented to the board, CDA plans to allocate $750,000 for the microloan program and targets to initially guarantee 50 loans in the following disbursements: 12 loans amounting each to $35,000 or less; 13 loans each amounting to $15,000 or less; and 25 loans each amounting to $10,000 or less. Recommended payment term is up to two years.<\/p>\n

This new loan program was described as a \u201cbridge\u201d to better the relationship between banks and borrowers. The objective of the program is to graduate the borrowers in two years and eventually enter into the SBCDI, which is also a bank-driven program. The board is expected to launch the new program when details are finalized.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Commonwealth Development Authority collected nearly half a million dollars from its outstanding loans, an…<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[54,366,26],"class_list":["post-31111","post","type-post","status-publish","format-standard","hentry","category-local-news","tag-agency","tag-cda","tag-cnmi"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/31111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=31111"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/31111\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=31111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=31111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=31111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}