By : Saipan Tribune
Source : http://www.saipantribune.com
Category : Small Business Grant
The CNMI Department of Commerce announced yesterday the unfortunate news received from the Office of International Trade under the U.S. Small Business Administration.
The notice from OIT received yesterday, immediately following a teleconference between representatives of OIT, SBA and CNMI Commerce, stated that the STEP Grant Program is cancelled and stressed that the Commonwealth will not be eligible to apply for future STEP awards as well, pursuant PL 111-240, §1207.
Effective immediately, all activities and/or expenditures under the CNMI STEP Grant Program are hereby cancelled. All affected individuals and/or agencies are encouraged to contact the Department of Commerce at 664-3044 for any comments and/or concerns.
Commerce Secretary Sixto K. Igisomar clarified that the CNMI was indeed not qualified to apply for the STEP grant, but was later classified as a qualified applicant following discussions by Delegate Gregorio Kilili Sablan.
“I want to express my gratitude to the grand accomplishments of our vibrant CNMI STEP Team for getting the STEP grant up to speed at full force, which includes CSD director Perry Inos Jr., ABTC director David Maratita, MVA's Perry Tenorio, Judy Torres, and the staff at CDA,” said Igisomar. “This grant allowed us to thoroughly review our export status and provide a mechanism that we can later duplicate for our small businesses if given the proper resources.”
Igisomar also noted that the OIT representatives did assure him that they will look at other available resources to better assist the CNMI with respect to similar programs under the STEP.
Inos said it was a “great disappointment to have learned of the loss of such an opportunity for CNMI small businesses, but we will still work with the CNMI's Small Business Development Center to assist small businesses to be export-ready with the resources SBDC offers despite the circumstance.”
Maratita, who in part assisted in the initial application of the STEP grant, added, “While the SBA expressly regrets any disruption that this action may cause, the only amicable solution to this matter is for U.S. Congress to amend Public Law 111-240, §1207, or the Small Business Jobs Act of 2010, and include the Commonwealth of the Northern Mariana Islands as an eligible state to apply for the STEP program. During the initial stage of the STEP grant announcement, this very concern was brought to the attention of [Delegate] Kilili.”
Maratita added that a letter dated April 19, 2011 was received from OIT stating the SBA's definition of 'State' under the Code of Federal Regulations, 2 CFR Part 225 (OMB Circular A-87), Cost Principles for State, Local and Indian Tribal Governments, which defines “State” as any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States. The letter further stated that since the Northern Mariana Islands fit well within the meaning of “State”, there is no need to modify the STEP program announcement in order to qualify the CNMI to apply. Therefore, through the same letter, the SBA's OIT extended its invitation and encouraged the CNMI to apply for the STEP program.
“However, in our teleconference this morning with SBA officials, their legal department revisited the law and concluded that the STEP program legislation identified with specificity the eligible recipients and did not include the CNMI,” added Maratita.
Therefore, as a result, the CNMI STEP grant program has been cancelled. This matter has also been referred to the AG's Office for further review.
The STEP program is a grant from the U.S. Small Business Administration that was awarded to the CNMI Department of Commerce last September. This program was to provide assistance and services through SBA resource partners to eligible small businesses in the CNMI. The program aims to increase the number of small businesses that are exporting, and increase the value of exports by small businesses. However, the STEP Program, under the Small Business Jobs Act of 2010 defines eligible State as Several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S Virgin Islands, American Samoa, and Guam. (DOC)
Source : http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=117612
