In response to public inquiries regarding federal financial assistance available for small businesses in American Samoa, Congressman Faleomavaega today reissued his Press Release that was initially sent on September 29, 2010, titled “President Obama Signs Small Business Jobs Act of 2010.”
“I want to emphasize that although Congress authorized this as a non-competitive formula grant, ASG must submit an application to the U.S. Treasury with plans for an access credit program for small businesses in American Samoa. Access credit program may include loan guarantees, loan sharing, or collateral programs that already exist in other states to help small businesses. Failure to submit an application in a timely manner may result in the loss of funds,” Faleomavaega said.
“The primary objective of the Act is to help small businesses gain access to new credit line and critical capital that will spur job creation so I am hopeful that ASG will follow up with the U.S. Treasury immediately so our local businesses in American Samoa can soon enjoy the benefits offered under this Act,” Faleomavaega continued.
Following is a complete copy of the Press Release issued on September 29, 2010.
“Congressman Faleomavaega today announced that President Barack Obama has signed into law the Small Business Jobs Act of 2010 to help small businesses gain access to new credit line and capital investments that will spur job creation.
“Two principal programs— the State Small Business Credit Initiative Program and the Small Business Lending Fund—provide the basic tenets of the Small Business Jobs Act of 2010,” Faleomavaega added.
“The purpose of the State Business Credit Initiative program, which will be administered by the Secretary of Treasury, is to provide funding to assist local governments in designing credit access programs for small businesses. Under the formula-based program, American Samoa is eligible for a grant of no less than $13.5 million. To receive the funds, the local government is required to file an application with the Secretary, including an implementation plan and program design, which may include loan guarantees, loan sharing, or collateral programs that exist in other states and territories.”
“In addition, $30 billion is authorized to establish a Small Business Lending Fund to make capital investments in eligible banks. Data from the Federal Deposit Insurance Corporation (FDIC) suggests that ANZ Amerika Samoa Bank is a potential candidate to apply for the fund under this program,” Faleomavaega described.
“Other Small Business Administration (SBA) programs and tax provisions in the new law are also applicable to American Samoa. Small businesses that qualify for loans from banks in American Samoa or elsewhere, such as in Hawaii or Guam, will be eligible for numerous incentives and tax breaks created in the new law.”
“The Small Business Jobs Act of 2010 underscores a commitment to make small business a top priority and I want to thank by President Barack Obama, Speaker Nancy Pelosi, and Senate Majority Leader Harry Reid for their leadership on this issue. Small business is essential to our economy as a major source of employment, and I am pleased that the benefits under this new law will be available in American Samoa” Faleomavaega concluded.