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%

According to the Scotiabank Group President & CEO Bruce Bowen, the reduction in the bank’s lending rate reflects its commitment to stimulating recovery in all sectors of the Jamaican economy. He also says it is critical that senior decision makers in government, business and civil society work together to build confidence in the business community and the general public, and that Scotiabank will continue to review its rates to determine if there is an opportunity for further adjustments over the short-term.