CNMI leaders push Marianas USA branding, highlight SSBCI and STEP supports for small businesses

Agency leaders and lawmakers at a House Commerce Committee meeting discussed efforts to market the Commonwealth of the Northern Mariana Islands to U.S. and regional investors, while describing federal small-business tools already in use and the constraints that may limit their impact.

Committee members heard that the commonwealth is circulating an “investment packet” and planning trade missions to raise awareness of the CNMI’s advantages as U.S. territory in the Asia–Pacific. “We’re really gonna be aggressive in promoting the CNMI, trying to create jobs, bringing investment in,” a presenting director said, noting the package has been shared with the Senate president and the Speaker of the House.

The discussion centered on two federal programs: the State Small Business Credit Initiative 2 (SSBCI 2) and the U.S. Small Business Administration’s State Trade Expansion Program (STEP). Kiyoshi Cody, manager of the STEP grant for the Department of Commerce’s economic development division, described STEP’s services for small exporters, including paid marketing materials, product testing and the U.S. Commercial Service Gold Key matchmaking service. “The crown jewel of the program…was to always be able to sponsor 4 small businesses to be able to exhibit their product at a foreign trade show,” Cody said.

Commerce and SITA staff said SSBCI 2 is intended to bridge gaps in private lending by offering loan guarantees, participation and collateral support. Officials reported an SSBCI pool “a little over $18,000,000” and that “over a million dollars” has already been issued in loans under the program. Committee members were told SSBCI’s first tranche was roughly $19,000,000 and that federal rules require disbursing 80% of that tranche before a jurisdiction can request the next tranche.

Officials warned of two constraints. First, local banks’ low lending-to-deposit ratios reduce origination appetite: one presenter noted local lending-to-deposit ratios may be near 20 percent versus typical U.S. levels of 70 percent or higher, limiting the volume of loans even with federal credit enhancements. Second, political risk at the federal level could end future SSBCI tranches. “There’s a possibility that it will be phased out,” one official said, referencing federal budget uncertainty.

Committee members and agency staff also raised non-financial barriers to exporting. Cody described three obstacles for exporters: capital access, limited e-commerce visibility (including difficulties with credit-card processing for CNMI PO boxes) and scalability. He said STEP-funded supports — from packaging redesign to market matchmaking — are designed to reduce those barriers.

Branding and trade strategy were repeated themes. Several speakers urged promoting the CNMI as the “Marianas USA,” linking a new product seal and marketing materials to U.S. branding to reduce confusion among foreign buyers. Officials discussed moving toward a “Marianas” product seal and aligning agency names and promotional materials to avoid inconsistent messaging. One presenter said the team is considering “made in the CNMI, USA” or “assembled in the USA” messaging to leverage U.S. origin advantages in Asia.

Committee members pressed agencies on data and coordination. Representatives asked which agency tracks exports from outer islands (for example, Rota) and pointed to gaps in export volume data. Officials said customs and department divisions hold pieces of the data and that interagency collaboration has recently improved, but more consistent, timely data-sharing remains a work in progress.

Several representatives stressed local business costs as an ongoing challenge; electric power bills were repeatedly mentioned as a major operational constraint for many firms. Lawmakers urged agencies to package incentives, reduce administrative friction and prepare a consistent single point of contact for investors visiting the islands.

The committee concluded by scheduling further follow-up meetings with federal and local small-business assistance providers and by urging agencies to ensure timely, high-level service for incoming investor delegations.