Parliament yesterday gave approval for the granting of a government guarantee for the loan – which will come from the Development Bank of Jamaica and channelled through the Jamaica Business Development Centre (JBDC) – so that micro and small business owners will have access to another $150 million in loan financing.
In bringing the resolution, Finance Minister Audley Shaw noted that the loans were repayable over 7 years with a fixed interest rate of 7% per annum, with a moratorium of 12 months on the principal payment.
According to Shaw, “Each project will be examined on its own merit and should prove its viability, demonstrate the ability to service the loan without any negative impact on its operations and the proprietors should invest 30 percent in equity and may access a maximum $15 million for the life of the loan.” He added that the “relatively modest amount forms a part of the government’s larger programme of providing capital for small and micro entities“. Shaw also mentioned that the Government is now seeking to source $2 billion from the Venezuelan PetroCaribe Fund for similar purposes.
April 15th, 2011 at 9:56 am
how can people with big ideas and no security access this fund small business