Department of Commerce is working on securing federal funding to renovate space at the Market Place, in order to turn it into a business incubator center which will include office space for the local Chamber of Commerce. The spot was previously occupied by a restaurant, which has since closed.

The business incubator project first surfaced during DOC’s fiscal year 2015 budget hearing in late August, when lawmakers asked DOC director Keniseli Lafaele about federal grants awarded to DOC and the Market Place.

Lafaele explained at the time that his office is looking at federal grants to renovate space inside the Market Place  previously occupied by a restaurant, that could be divided up for use as business incubators.

Asked this week as to when renovation will begin on this project and the total cost for the renovation, Lafaele said renovation will start "as soon as we can secure some funds and we’ll keep it low cost as possible — less than $50,000 if we could”.

No contractor will be awarded the project until funding is secured, he confirmed to Samoa News.

Asked about the type of business incubators targeted for this area, Lafaele said, “any type of business that can be conducted from within the confines of a cubicle.” Asked as to why DOC is targeting business incubators instead of another restaurant, he said that “we need to develop 'start up' businesses" in American Samoa.

He also said that “we'll provide office space to be shared by the Small Business Development Center—currently headquartered at ASCC— and the local Chamber of Commerce, to offer their services to these start up businesses being incubated.”

According to the director, the time frame of incubation is one-year, “but of course they can always move out sooner should their development warrant an earlier exit.” He said more details will be released once the project starts moving forward.

BUSINESS LICENSES

Meanwhile, DOC said in its third quarter performance report of fiscal year 2014—covering the period of Apr. 1-June 30, 2014 — that as of the end of the third quarter and based on the DOC database, a total of 4,129 business licenses were registered at Treasury Department’s Revenue Branch and this indicates an increase of 5.82% compared to the 2nd quarter of FY 2014, with 3,902 business licenses issued.

However, if compared to calendar year 2013 (with 3,416 business licenses) it reveals a significant increase of 20.8% or additional business activities of 713, according to the report, which also states that this indicates a “positive business activities growth trend”.

According to the report, as of June 30, 2014, some 112 new business licenses applications were processed and approved. The highest number of new businesses in the Top Three list: retail stores at 19; commercial transportation at 17; and fast food at 12, it says.