Bank- DOC Revive Handicraft Skills,
Boost Tourism

Used by permission of the American Samoa Tribune

By Malia Sio

Those with talent and skills in handi­craft will be able to showcase their work and take the standard of their products to another level with a major fund boost announced yesterday.

The Development of Bank Ameri­can Samoa in partnership with the Department of Commerce and the Office of Tourism have launched a Handicraft Micro Loan program.

A total of 13 successful applicants of the pilot loan scheme received their loans of between $5,000 and $500 yes­terday.

‘This program is to encourage small business and individuals to go into handicraft production,” Utu Abe Malae, President of the Development Bank of American Samoa told the Tribune yesterday.

“This is to boost tourism, revive handicraft and give the many talented people out there the chance to earn a living,” he explained.

But three government officials were the most instrumental in this project.

They are the Development Bank’s Commercial Lender, Komesina Afalava, Bank Grant Coordinator and Writer, Umesh Bandhary, and the Department of Commerce and Office of Tourism Division’s Chief of Market­ing and Local Development, Falefata Moli Lemana.

And while many have attributed the initiation of the project to Falefata, he is politely staying away from the lime­light.

“There are many people who have worked hard to make this happen,” Falefata told the Tribune.

In fact, the idea of approaching a lending institution for possible assis­tance came after brainstorming with his superior at the bank, Virginia Samuelu, on how to boost tourism in the Territory.

“After seeing the stocks of handi­crafts in port every year when boats come in, we knew we needed to do something to open up enthusiasm and encourage more people to get involved in producing quality handicrafts,” he said.

Mr Bandhary and Mr Afalava of the Development Bank were approached by Falefata in June and the search for funds for the project began.

Funds are now available under a Fed­eral Program called Commercial Service Block Grant (CSBG) allowing small loans for small businesses.

Falefata said he would be one of the first people to admit that the current standard dard of handicrafts is not where it should be.

“The Development Bank has been great,” he admitted. “We knew we could not approach a commercial bank with the idea as they have strict conditions.

Most of the people applying for loans to purchase materials for their handi­crafts are very talented but are unem­ployed with no security for loans.

Falefata thanked Utu Abe Malae and the Department of Commerce Director Faleseu Paopao for their support for the project.

“They have been very supportive from the beginning,” he said. “We all worked hard and this is finally here.”

The applicants are given 18 months to repay their loans, with less than 2.5 per­cent interest.
“We want to encourage small busi­nesses,” Utu said. “As we revive handi­craft-making means a boost in the tour­ism industry.”

Utu remembers the days when the people in Aua carved lots of handicrafts for ships that come into port.

“This is what we need again,” he ex­plained.

He admitted however that the program would not without restrictions.

“We made sure that the applicants know that we want good quality prod­ucts,” he pointed out.
“We don’t want people making handi­crafts that are not up to standard and give American Samoa a bad name.

“We want the best quality. So we can offer funds to people with good skills and talent to get started.
Before loans are approved, the bank requires those in the tourism industry to bring in samples of the sort of handicrafts tourists want.

“It’s a mix of men and women. This program is open for anyone,” Mr Afalava told the Tribune.
“This is a pilot loan program, no re­strictions. But these will come into play when the program grows,” he said.

Mr Afalava said one application was turned down because it was for a farm­ing project. Other applicants just did not followed up on their applications.

“We want this program to work as a lot of people will benefit down the line.”
“This is the dream, to make this pro­gram work,” Mr Afalava said.

“The benefits out there are numerous. This project is designed to promote tab ent, and improve artifact making.

“I want to encourage everyone gifted out there to talk to Falefata.

“It’s a good start for business. In the long run, these people could become eligible for official bank loans of up to $25,000.”

Falefata agrees. “This program is making it possible for people with no securities to have access to funds,” he said.

If they do not work they can still ap­ply to have their loans secured by their sons or daughters who are working.

“On Christmas Day I called everyone whose loan had been approved and they were all excited.”

Falefatu said American Samoa has a lot of work to do to get ready for the South Pacific Arts Festival in 2008

“This is just the beginning. We are looking at moving on to beach f ale projects.”

He said a lot of development has started and a lot of people were excited.

“We will be watching closely and monitoring how the successful applicants spend these funds,” he said.

“We need to get the grass root people involved to make sure that everyone is moving ahead and is part of this devel­opment.”