Hagatna, Guam – On September 8, 2008, USDA Rural Development State Director Lorraine Shin and Pacific Islands Development Bank President Aren Palik signed the documents for a $750,000 loan under the USDA Rural Development’s Intermediary Relending Program (IRP). As the intermediary bank, PIDB will use the proceeds of the loan to finance business facilities and community development projects in the western Pacific island countries, establishing new businesses, expanding existing businesses, thereby saving jobs and creating new employment opportunities.

At the loan closing ceremony, State Director Lorraine Shin said, “we are very fortunate to have Pacific Islands Development Bank as our partner. They have proven to be a viable entity in providing small business loans to the Western Pacific.” She also commended the staff of its Guam office for their excellent work in assisting PIDB securing the loan.

Joe Diego, Area Director for Rural Development’s west Pacific region said, “USDA Rural Development values the long-term partnership established with PIDB. Small businesses in Guam, the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia and the Republic of Palau that cannot obtain conventional bank financing now have another option to consider when addressing the capital needs of their business.”

Pictured Left to Right: Jeff Jobe, National Business and Cooperative Field Advisor, USDA Rural Development; Joseph M. Diego, Area Director, USDA Rural Development, West Pacific Area; Aren Palik, PIDB President/CEO; Lorraine Shin, State Director, USDA Rural Development; Bernadette Balajadia, Area Specialist, USDA Rural Development; Lourdes M. Perez, PIDB Resident Director; and Aaron Sigrah, PIDB Loan Officer.

Bank President Palik thanked State Director Shin and Area Director Diego and their staff for their role in making the third loan possible. He said, “we have enjoyed a very good and professional working relationship with your staff in Guam and Hawaii and I commend you on your leadership and continued interest in helping small businesses in the islands.” Palik added, “PIDB will do its very best to make sure that the objective of the program is achieved and the benefits are realized by small and medium businesses in the region.” President Palik shared with State Director Shin examples of the successful projects funded under the IRP program, adding that the additional $750,000 will enable the bank to expand its program assistance.

Under a highly competitive IRP funding process, PIDB was awarded $500,000 in fiscal year 2004 and another $750,000 in fiscal year 2006. This is the third loan under the same source priced at one percent (1%) interest to be repaid in 30 years with a 3-year grace period. As a condition of approval, PIDB will provide a dollar-for-dollar match to fund the revolving account to re-lend to businesses in the islands.

PIDB is a regional development bank servicing the financing needs of the people and businesses in Guam, Palau, Commonwealth of the Northern Mariana Islands, and the FSM States of Yap, Chuuk, Pohnpei, and Kosrae. Its mission is to contribute to the acceleration of economic and social development of member States and nations and to promote regional cooperation. Further information on the bank and its programs is available at our office in Guam or by visiting PIDB’s web site at www.pacificidb.com. Pacific Islands Development Bank is an Equal Opportunity Lender, Provider, and Employer.