The CNMI Department of Commerce will be hosting an open house on Tuesday, June 15, 2010, from 9am to 12pm, to launch the re-establishment of the CNMI's Small Business Development Center. The event will be hosted on the bottom floor of the CNMI Department of Commerce on Capital Hill. 

The CNMI SBDC is a result of a partnership between the CNMI Department of Commerce, the Commonwealth Development Authority, the University of Guam, and the U.S. Small Business Administration. 

The office will be opening after nearly 10 years from its closure at the Northern Marianas College campus. 

Prior to its re-establishment, the CNMI was the only jurisdiction in Micronesia that did not have an SBDC. 

The services offered at the center include business development counseling, access to business planning materials, access to a computer lab for purposes of business development, as well as assistance with attaining financing for qualified small businesses. 

The newly hired SBDC director, Gary Liddle, brings over a decade of experience in working with small businesses within the SBDC context. 

“I am certainly very excited to be in the CNMI to launch such an important program. I hope that members of our community will come out to the office and learn more about what services we can provide to aid them in their business development and current operations. As many people know, the U.S. economy is driven by small businesses, and the case is no different here in the CNMI. It is our responsibility to provide the services and expertise needed to help the CNMI small business community grow and thrive,” said Liddle. 

The Fitial administration has touted the re-establishment of the SBDC as a stepping stone to the CNMI's economic recovery. The partnerships required to bring the program back to the CNMI demonstrates the regional collaboration between Fitial and Guam Gov. Felix Camacho. The Department of Commerce said that it has been working with the Commonwealth Development Authority and Guam-based entities on re-establishing the SBDC for over a year. 

“The SBDC is one very important piece of the puzzle in putting our economy back together. Other pieces include the results of the Economic Restoration Summit, which was a community effort that identified four major industries for development. Of these industries, there is progress being made in three of the four industries through the education industry, call center industry, and the aquaculture industry. My administration has been working diligently to ensure that these industries are developed in a guided and planned manner. The progress will be reported to the community and further planning will be done at the upcoming 2nd Economic Restoration Summit,” said Fitial. 

While the SBDC will bring much needed guidance and services to local residents looking to start their own businesses, financing guidance is one of the most critical services the SBDC will offer. 

In recent months, Commerce Secretary Michael Ada expressed concern that the FDIC banks in the CNMI were not lending to small businesses. Commerce's concern was underscored by the fact that the risks of loan defaults were minimized through various U.S. Small Business Administration programs that guaranteed loan repayment up to 90 percent. 

Ada said the next step is to partner with banks in the CNMI, along with relevant federal agencies, to develop a collaborative plan to increase lending for small businesses in the CNMI. 

“While I may have been aggressive in my communication with the FDIC banks relevant to the small business lending trends in the CNMI, it was driven by my obligation to ensure that our business community receives the resources it needs to grow. In all fairness to the lending institutions in the CNMI, they must have viable business plans in front of them prior to lending. Just because the feds will back 90 percent of the loan doesn't mean that banks should approve any application that is put in front of them. This is where the SBDC plays such a critical role as it will ensure that business plans are truly worthwhile of financing. We will be meeting with the FDIC banks, the SBA, and the USDA in early July to develop a collaborative plan to increase small business lending in the CNMI. There are several issues that we must address to really see an increase in lending in the CNMI, inclusive of issues surrounding Article XII,” said Ada.(PR)