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The Virgin Islands Economic Development Authority (VIEDA) has approved loan applications providing more than a half a million dollars to small businesses in the territory, increasing overall lending to small businesses to $1,648,857 today date in fiscal year 2011. According to the EDA’s Chief Executive Officer Percival Clouden, the approval of the two applications reflect the on-going commitment of the administration to ensuring access to capital for small business owners as well as assuring that they realize their goals of becoming entrepreneurs.
“We recognize that the foundation of the Virgin Islands economy is small business and that each day, their owners take on the risks that come with ownership and the responsibility of providing for their families and their employees. Our objective is to be supportive of their efforts either in providing technical assistance, direct loans or working in partnership with them and their primary lenders,” Governor John P. de Jongh, Jr. said Monday.
“The recent loan closings were $475,000 for the expansion of an existing restaurant with 15 employees and another in the amount of $48,850 to a consulting firm enabling the company to save a job while creating another position,” Clouden explained.
Additionally, Clouden said that the EDA’s efforts to attract new and assist existing business owners and operators continue. “The EDA staffs its auxiliary office on St. John on Thursdays from 8:30 a.m. to 3:30 p.m. at The Battery in Cruz Bay.” He noted that there have also been approvals of performance bonding facilities for contractors by the EDA.
“The EDA’s guaranty bonding program, administered by the Government Development bank, one of two lending entities of the EDA,” Clouden explained, “is an additional initiative of the governor’s office to ensure that our local contractors cannot only compete for construction projects in the Virgin Islands, but also that funding circulates locally to further build our economy.” The Government Development Bank has issued seven guaranty bonds for a total exposure to local contractors of $1.5 million.
Clouden said Monday that the loan programs available through both the Government Development Bank and the Small Business Development Agency contribute greatly to the stimulation of the territory’s economy and encourages the development of various projects that add to the quality of life in the territory.
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