Small Business Development Center Speaks!

"There is money to be had!" stated Herbert Thweatt at the July 15th meeting of the American Samoa Chamber of Commerce. As the American Samoa Small Business Development Center Director, Mr. Thweatt was asked to speak to the Chamber regarding the new economic reality in the territory. In his presentation, Mr. Thweatt gave the members a host of information regarding multiple funding sources for people interested in starting or growing their small business. A copy of the U.S. Congress H.R. 2352 was distributed showing efforts by legislators to pass the funding bill for a variety of projects from the establishment of veterans business centers and native American entrepreneurship to women's business and SCORE program improvements. Most interesting of these is an initiative under Title VII of the resolution that would give Small Business Development Centers the ability to make small loans to qualified applicants.

If approved, the SBDC would receive from $50,000 to $100,000 annually for this purpose. Monthly, a series of "micro-loans" would be awarded to businesses in the amount of $500 to $25,000 according to their needs. Bringing this program to American Samoa has been a challenge, according to Mr. Thweatt. "They don't really consider us as a part of (the United States.) We are but we aren't. So, we're really on our own in many ways." It is expected that the micro-loan program will reach American Samoa eventually. And when the SBDC talks about getting the money, it's no hot air! The Economic Impact Report distributed at the meeting shows figures for 2008 and the first half of 2009. In that period, the SBDC has produced 25 Business start-ups, 50 jobs and over $500,000 in capital infusions! The SBDC Courses also offers a range of day and night courses covering the basics of business start-up, customer service, marketing, grant writing and Quickbooks among others. During the question & answer session, Mr. Thweatt fielded a thought provoking question regarding the success rate of the businesses his office assists. "I'd say about 40 to 50 percent fail within a year (and one common reason for this) is due to the lease." Businesses often set up in a location without getting a good long-term lease that allows them to stay after their initial lease expires. If the landlord wants more money and there is no provision in the lease to spell out the terms of increases, it can be fatal for a business. Mr. Thweatt's advice to conquer this issue is to seek out a copy of a commercial lease from his office and show it to the landlord. Modeling your own lease after those of other established operations will increase your chances for success. For information on the Small Business Development Center or the materials presented here, contact Herbert Thweatt at 699-4830 or visit the center on the campus of the American Samoa Community College.