Micro, Small, Medium Enterprises Development Division
(MSMEDD)
The MSME Development Division at Samoa Business Hub plays a crucial role in supporting MSMEs. Their
work encompasses a range of services including, business planning, mentoring, and business advisory to
help entrepreneurs navigate the complexities of running a business. Additionally, the division facilitates
access to finance through Memorandums of Understanding (MoUs) with financial institution such as
Samoa Commercial Bank, Bank of the South Pacific, National Bank of Samoa, ANZ Bank and
Development Bank of Samoa. They manage the Business Loan Guarantee Scheme(BLGS), offering 100%
guarantee for loans up to 20,000 and partial guarantee for loans up to 100,00. MSMEDD also focuses on
monitoring, evaluation, accountability and learning to ensure continuous improvement and
effectiveness in their support services.
ACCESS TO FINANCE : BLGS- Business Loan Guarantee Scheme (Full Guarantee & Partial Guarantee)
NZ AID- 100% BUSINESS LOAN GUARANTEE SCHEME(BLGS)
The NZ Aid 100% BUSINESS LOAN Guarantee Scheme(BLGS) is a financial support initiative administered by the Samoa Business Hub (SBH) to address one of the most significant challenges faced by small businesses in Samoa—the lack of collateral required by commercial banks to secure business loans.
Through this scheme, SBH manages a pool of funds provided by New Zealand Aid, which are held as term deposits with commercial banks. These term deposits act as guarantees to secure business loans for eligible clients, thereby enabling entrepreneurs to access much-needed finance for growth and sustainability.
Loans available under the NZ Aid 100% Guarantee Scheme range from SAT $10,001 to SAT $20,000. Importantly, clients are not required to provide collateral or security for these loans. Instead, a Credit Insurance arrangement is applied in place of collateral. This insurance is paid from a portion of the approved loan and provides coverage in the event of default, ensuring the loan remains secured with the commercial bank.
Eligibility Requirements
To qualify under the NZ Aid 100% Guarantee Scheme, clients must meet the following criteria:
- Citizenship: Must be a Samoan citizen. If a resident, the client must be of Samoan descent or legally recognized through civil union.
- Business Operations: Must be actively operating a business. For start-ups, the client must demonstrate a genuine business interest, with viability assessed by an SBH Business Advisor.
- Age Requirement: Must be between 21–50 years old. Applicants above this age range must apply with a co-borrower.
- Family Limitation: Only one guarantee per immediate family is permitted. Exceptions may be granted where the family operates two or more genuine and unrelated business projects.
- Compliance: Businesses across all sectors of the economy are eligible, except those that violate any laws or regulations—particularly in relation to environmental protection, labor laws, and cyber security standards.
Business Training: Must successfully complete Business Training offered by SBH prior to loan processing stage.
The NZ Aid 100% Guarantee Scheme is a vital tool in bridging the financing gap for Samoa’s small business sector. By removing collateral barriers and introducing Credit Insurance in place of client-provided security, the scheme empowers local entrepreneurs to access affordable finance, build sustainable enterprises, and contribute to Samoa’s economic development.
ADB Partial Guarantee Scheme
The ADB Partial Guarantee Scheme is a key component of the Samoa Business Loan Guarantee Scheme (SBLGS), designed to enhance access to finance for small and medium-sized enterprises (SMEs) in Samoa. This scheme is made possible through funding provided by the Asian Development Bank (ADB) via the Ministry of Finance, in collaboration with the Samoa Business Hub (SBH) and participating commercial banks.
The scheme aims to encourage commercial lending to viable businesses that have growth potential but may face challenges meeting full collateral requirements. By sharing the credit risk between SBH (through ADB funding) and the lending bank, the programme promotes greater financial inclusion and supports private sector development in Samoa.
Under the ADB Partial Guarantee Scheme, SBH provides an 80% guarantee on approved business loans ranging from SAT $21,000 to SAT $100,000+. The remaining 20% of security is provided by the client, in a form that aligns with the participating bank’s collateral policy.
Key Features of the ADB Partial Guarantee Scheme:
- Partnership: Funded by the Asian Development Bank (ADB) through the Ministry of Finance.
- Guarantee Coverage: SBH guarantees 80% of the loan amount, while the client provides 20% security.
- Loan Range: Applicable to loans between SAT $21,000 and SAT $100,000+
- Implementation: Delivered through partnerships with participating commercial banks, following their respective lending policies and procedures.
Eligibility Requirements
To qualify under the ADB Partial Guarantee Scheme, clients must meet the following criteria:
- Citizenship: Must be a Samoan citizen. If a resident, the client must be of Samoan descent or legally recognized through civil union.
- Business Operations: Must be operating a legitimate and financially viable business, with a proven record of management capability and cash flow.
- Age Requirement: Must be between 21–60 years old. Applicants above this range must apply with a co-borrower.
- Security Contribution: Must provide collateral or security equal to 20% of the loan amount, in accordance with the bank’s policy.
- Compliance: Businesses must comply with all national laws and regulations, particularly in areas relating to environmental protection, labor standards, and cyber security.
- Business Training: Must successfully complete Business Training offered by SBH prior to the loan processing stage.
The ADB Partial Guarantee Scheme plays a pivotal role in strengthening Samoa’s private sector by enabling greater access to credit for SMEs. Through this collaborative approach, ADB, the Ministry of Finance, and SBH are empowering local entrepreneurs to expand operations, create employment, and contribute to sustainable economic growth.