American Samoa government has launched its federally funded multi-million dollar venture capital program, with the goal of creating new businesses, as well as supporting existing business expansion, thereby boosting the local economy and creating new jobs in various business sectors.

ASG executed documents last August for the State Small Business Credit Initiative (SSBCI), which aims to increase credit availability for small businesses. Before the end of last year, the U.S. Treasury Department approved American Samoa’s request to delay for 60-days until January 4 this year, the launching of the local American Samoa Venture Fund (ASVF) to operate the SSBCI.

The ASVF will use the entire $10.5 million allocation from the U.S. Treasury to operate the ASVP, which will be overseen by the local Commerce Department (DOC).  A U.S. Treasury team was in the territory last December for a site visit of the ASVF program; this was followed by their approval, resulting in the recent launch.

Responding to Samoa News inquiries, DOC director Keniseli Lafaele said that with the program launched, they are now accepting applications for the ASVF. Additionally, outreach and education awareness programs about the ASVF will be launched soon in both print and broadcast media.

Today, DOC staff will make a presentation to the Chamber of Commerce, while other additional meetings are being planned for other business groups or organizations.

While the SSBCI is a one time program which expires Mar. 31, 2017, the DOC director told Samoa News on Monday that there's current effort in Congress to extend the program further with at least another $1.5 billion infusion into the program nationwide.

The ASVF’s investment priorities are in the following industries: Healthcare/Medical; Air and Sea transportation; Fisheries; Agricultural; Eco-tourism; and Manufacturing.

U.S. based companies In-Tek and Diamond Venture Fund, LP are the “contracting entities that administer specific aspects” of American Samoa’s approved program, Lafaele told Samoa News last August.

Gov. Lolo Matalasi Moliga, in his State of the Territory address, said the SSBCI program is being leveraged by other federal programs to generate additional venture capital to support the creation of new or to support existing business expansion.

“The ultimate goal is to create new federal minimum wage immune jobs, particularly in the healthcare area,” Lolo said. “The SSBCI program is catering to improve the quality of healthcare services along with the provision of said services by privately owned healthcare service providers.”

As a hybrid venture fund, ASVF’s portfolio companies and the structure of venture financing transactions will differ from those of conventional venture capital programs, according to DOC information.

For the most part, DOC said, ASVF portfolio companies will provide publicly-mandated and financed services to American Samoa residents, firms, and public agencies. For example, the expansion of Medicaid funding will create significant opportunities for entities that provide health care services to the local citizenry.

SSBCI program information is available online: www.doc.as.gov