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The Financial Services Unit (FSU) provides financial assistance to “unbanked” groups of micro and small businesses. The FSU represents the merging of financial and non-financial technical assistance. The assistance targets clients who have accessed business services (training, business assessments, etc.) through JBDC’s Islandwide network of business experts.
As a pre-requisite, only projects that have completed the appropriate business assessment and business plan development will be funded. Hand-holding services are also provided as a part of the loan package.
Who is eligible?
The loan product will target three groups of entrepreneurs:
- New Business start-ups
- Micro-businesses
- Small businesses
Sectors to benefit:
- FashionAgro
- Processing
- Gift & CraftCreative
- IndustriesTourism Related
- Activities
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- Information Technology
- Energy related projects (solar, etc.)
- Non-metallic mining
- Support Services for manufacturing
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Product Description
New Business Start-ups
New Businesses being started
| Minimum Loan Amount |
$200,000.00 |
| Maximum Loan amount |
$500,000.00 |
| Interest Rate |
10% per annum |
Note: Maximum loan amount may be exceeded in special circumstances subject to the discretion of the Credit Committee. The interest is calculated on the reducing balance.
Micro Businesses
Businesses employing 1 to 3 individuals either as a partnership, sole proprietorship or company.
| Minimum Loan Amount |
$200,000.00 |
| Maximum Loan amount |
$500,000.00 |
| Interest Rate |
10% per annum |
Note: A maximum of $100,000.00 may be allocated for raw materials and/or working capital (unsecured). The interest is calculated on the reducing balance.
Small Businesses
Businesses employing up to 50 persons
| Maximum Loan amount |
$2,500,000.00 |
| Interest Rate |
10% per annum |
Note: The interest is calculated on the reducing balance.
Criteria for Assistance
- Businesses should be in the productive sector (i.e. manufacturing, agriculture, tourism, etc.)
- At least 51% of the business should be Jamaican owned.
- Business must be registered
- Business must be tax compliant
- Business should be in existence for more than twelve (12) months to qualify as “existing”.
- At least 50% of inputs should be indigenous to Jamaica
- Applicant must have participated in JBDC’s business development programme (subject to client assessment).
Investment Guidelines (?)
- The loan facility is valid only for purchasing raw materials, capital goods and technical assistance. Funds cannot be utilized for loan refinancing.
- Loan approval is subject to due diligence done by JBDC to authenticate & verify information provided in the application form/business plan.
- JBDC must be provided with quarterly financial reports from the borrower throughout the life of the loan.
- Loan amounts will not exceed eighty percent (80%) of capital injection needed or 50% of the company’s equity base, whichever is less.
- The fund will not provide 100% financing
- Investments must be based in Jamaica.
Loan Tenure
The loan period will be decided on an individual basis as indicated by the entity’s cash flow projections with a maximum repayment period of forty eight (48) months.
Collateral
Emphasis will be placed on the viability of the project as well as its employment potential. Both traditional and Non-traditional securities will be considered. Amounts used to purchase equipment must be secured by the equipment. Working capital up to $100,000.00 may be granted on an unsecured basis provided the total loan does not exceed $500,000.00. A LIST OF COLLATERAL IS AVAILABLE AT JBDC / JAMBIC OFFICES ISLANDWIDE.
Documents Required.
NEW BUSINESS START-UPS
- TRN
- Photo identification (National ID, Drivers License or Passport)
- Two (2) Photographs
- Two (2) Reference Letters (Minister of Religion, Justice of the Peace, Medical Practitioner, Attorney-At-Law, Member of Ja. Constabulary Force (Gazetted Rank)
- Business Registration documents
SMALL BUSINESSES
- TRN
- Photo identification (National ID, Drivers License or Passport) of the principals
- Latest audited & in-house financial statements, personal financial statements
- Business registration documents
- Tax compliance certificate
- List of management officers and functions
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