The Development Bank of Samoa (D.B.S.) is offering a loan valued at SAT$100,000 for businesses that operated during the pre-COVID-19 period up until today. 

Applications and proposals for the “Support for COVID-19 business revival” assistance has opened to eligible businesses with the closing date this Friday.

A notice issued by the financial institution outlined guidelines for businesses to follow with the overall objective to strengthen and revive businesses that have been operating during the pre-COVID-19 period up until today. 

In terms of eligible businesses that apply they should clearly explain the impact of the pandemic on their business. Other criteria include the business venture being open to businesses that operated, which have been affected before and current by COVID-19, a registered business with the Ministry of Revenue and Customs from 2019 to 2022. 

The business must also be a legal entity fully owned by Samoan nationals, the business employs a minimum of 10 full-time employees pre-Covid-19 and the business has satisfactory credit history. 

Applicants must also show evidence that the business is committed to reviving their operation to earn income for sustainability and loan servicing, evidence of business contribution cash or in-kind. 

The funding assistance will not be permitted for refinancing, however, other requirements are as applied with the normal lending policy of the D.B.S. 

According to the annual budget for 2022/2023 the D.B.S. received a $1million capital injection from Government and similarly for Samoa Trust Estates Corporation. 

The D.B.S. 2021 annual report stated that the tourism sector accounted for 69 per cent of the bank's loan portfolio, which was valued at $96 million with only $9 million in loans going to farmers for that period. 

Just last month a Cabinet Minister announced plans by the Government for farmers to turn to a local commercial bank to negotiate for assistance packages of collateral free loans for farmers and fishermen. 

The Minister of Agriculture and Fisheries, La’auli Leuatea Schmidt had told a parliament discussion that the National Bank of Samoa (N.B.S.) is at an advanced stage and nearing completion. 

He said the proposed loan scheme will allow farmers and fishermen to borrow between SAT$5,000 to SAT$15,000 from the bank without the need for collateral or a guarantor.

Small-scale farmers who grow vegetables, according to the Minister, can borrow SAT$5,000 or less depending on the size of their produce. 

La’auli pointed out that the crops planted by the farmers are a guarantee that they will harvest and generate income in the months that follow.