e Providing the basic physical and resource developmentsnecessary for economic growth by expanding a Trust Territory-wide construction program which includes rehabilitating and building roads, airports, and harbor facilities; and improving and expanding water, electrical, sanitary, and other basic utilities. e Encouraging Micronesians to establish their own business enterprises by providing them with necessary technical assistance and long-term loans. These enterprises include establishment of cooperatives, small home industries, expanded production of handicraft, search for markets, and instruction in modern methods of production. e Providing for capital participation in economic enterprises which are otherwise beyond the financial capacity of local investors, by providing an economic climate which applicants attempt to secure cred directly from commercial banksin t| area, and that only when such assis ance is not available may they subm applications to the Board forits co sideration. Loans are madedirectly, in the form of a loan guarantee to commercial bank by the Territon Government, with the Board setti aside cash in reserve equivalent to 2§ of the total loan guaranteed. Loans may be made or guarante to: (a) A citizen or resident of Trust Territory, or a group or assoc tion of Trust Territory citizens residents, whom the Board of Dir tors regards as a suitable borrower. will allow business, commerce and (b) Corporations and cooperat societies authorized to conduct bi ness in the Territory; citizens or rn dents of the Territory engaged agriculture, manufacturing, or co mercial fishing; improvement ofto travel facilities, fisheries, large-scale for industrial purposes which Board specifically determines to beneficial, desirable and necessary the economic development of Trust Territory and which meets | or more of the followingcriteria: industry a profit while providing productive employment opportunities for Micronesia’s growing population. Enterprises which may require such participation include commercial transportation and tropical agricultural production, food processing, and other fabricating and manufacturing industries. Credit Facilities The Economic Development Loan Fund is one important device for stimulating the local economy. The Loan Fund is administered by a seven- member Board of Directors, chaired by the Director of Economic Development. A general rule established by the Board of Directors requires that loan 44 ism; and improvementofreal prope —Creates new employemnt; —Replaces imports, increases expor —Reduces consumerprices; —Provides vitally needed facilities . services, During . the year under rev direct loans totaling $115,300 » made and $164,200 worth of a: tional loans were guaranteed ¥ commercial banks. At year’s ¢ $23,000 in loans were pending ant ™ Part VI—Economic Advancen