Loans Jamaica

President and CEO of Scotia Group Jamaica, Bruce Bowen, announced yesterday, the launch of a concessionary 9.95% loan facility called the Scotia Productive Sector Growth Fund that’s specifically for Jamaica’s productive. They have made J$500 million available for lending within this fund, and at an interest rate of 9.95%, it is undoubtedly one of the cheapest deals that a commercial bank has placed directly on the table.

ScotiaBank has said that the loan facility is being financed solely from its own internal resources, and that the goal of the fund is to help stimulate production through the creation of new and expansion of existing businesses.

Additional details about the Scotia Productive Sector Growth Fund:

• All applicants must present a business plan, cash flow projections and documented “information to support the viability of their project(s)
• Amounts will be disbursed in Jamaican currency
• Loans have to be fully collateralised
• Repayment is in seven years, which includes a moratorium of up to two years on the principal
• Access to this non-revolving facility is conditional on Scotiabank becoming the borrower’s lead bank
• $425 million of the $500 million fund will be dedicated to older businesses that want to expand and improve production
• The other $75 million will be accessible by businesses under two years old
• ScotiaBank will only lend up to 70% of the project funds, borrowers must show that they can finance the other 30%