State Small Business Credit Initiative

In March 2012, the U.S. Department of Treasury approved $13.2 million in funding to the CNMI through the State Small Business Credit Initiative (SSBCI), a component of President Obama's Small Business Jobs Act of 2010.

The SSBCI provides federal funding to states and territories to strengthen programs that support lending to small businesses and manufacturers.

The CNMI Department of Commerce (DOC) has received $4.35 million, the first of three disbursements of the funds. The objective of the CNMI's SSBCI Program is to leverage private lending to increase the amount of credit available to small businesses.

The CNMI DOC has designated the Commonwealth Development Authority (CDA) as the implementing agency for the CNMI SSBCI Program. The two programs approved for the CNMI include:

Loan Purchase Participation Program (LPPP)

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 (CSP)

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.

Program Documents

CNMI SSBCI Program FACT SHEET

CNMI SSBCI Frequently Asked Questions

Guidelines - Loan Purchase Participation Program (LPPP)

Loan Purchase Participation and Servicing Agreement

Guidelines - Collateral Support Program (CSP)

Cash Collateral Deposit Agreement

Intake Form

Allocation Agreement

2012 CNMI Commerce-CDA SSBCI MOU