Kingston, Jamaica – The Jamaica Business Development Corporation (JBDC) is urging Micro, Small and Medium-sized Enterprises (MSMEs) to consider Jamaica’s insolvency framework as a realistic tool for debt recovery and business rehabilitation, especially as firms continue to recover from the economic fallout of Hurricane Melissa. This message was underscored during the JBDC’s Virtual Biz Zone session, ‘Debt Therapy: Business Rehabilitation under the Insolvency Act’, held on November 25, 2025.
Entrepreneurs are facing weakened cash flow, damaged assets and higher operating costs, while national forecasts suggest slowed growth and ongoing inflationary pressure. These conditions leave MSMEs exposed and make timely financial intervention critical.
“Financial literacy is a significant pillar among the slate of developmental interventions for MSMEs in JBDC’s client pool. Conversations about finances are often centred around acquiring funds, but more emphasis must be placed on the management of finances which can ultimately make or break a business. Debt is a difficult conversation, but one that must be had. We don’t want businesses closing when they have the potential to do well and spur economic growth,” explained Harold Davis, Acting Chief Executive Officer of the JBDC.
Davis says against this background, one of the JBDC’s newest partnerships with the Office of the Government Trustee (OGT) is designed to stimulate the MSME ecosystem on the matter of debt, and to raise awareness on the solutions available.
Brittany Savage, Director of Insolvency Administration at the Office of the Government Trustee (OGT), presenter at the Virtual Biz Zone explained how the insolvency process works and why more business owners should use it before their financial situation deteriorates further.
Savage noted that insolvency carries unnecessary stigma and is often misunderstood. “The regime isn’t here to shame anyone,” she told participants. “It’s a system that was designed to assist people and businesses when they realise they’re in over their heads.” She warned that many MSMEs wait until liabilities escalate beyond control, adding, “By the time some people come to us, the debt has piled up, the interest has run away, and they feel like they have no options left. But there are options, and the law protects them.”
Savage explained that under the Insolvency Act, once a debtor files, creditors cannot pursue legal action or add further interest, giving the business a critical opportunity to reorganise. She emphasised that the goal is business continuity, not closure. “We want you to keep operating,” she said. “We want you to earn, pay your staff, service your debts and get back to a place where the business is sustainable.”
She also highlighted that the OGT serves as a publicly funded trustee, allowing entrepreneurs to access the process without the high costs typically associated with private insolvency services. “This is a public office,” she said. “We don’t charge the fees that private trustees do. The Consolidated Fund covers those costs because the system is meant to help Jamaicans, not discourage them.”
During the discussion, Savage noted that insolvency is often viewed as a last resort, but early engagement increases the likelihood of successful recovery. “We really encourage people to come before it gets bad,” she said. “When you act early, you have more leverage, more options and a better chance of negotiating terms that actually help you.” She reiterated that the law exists to provide relief, not punishment. “We’re here for businesses that need help, not to punish them,” she said. “And you can come out better because of it.”
As an agency of the Ministry of Industry, Investment & Commerce (MIIC), the OGT is mandated to assist debtors, assess their financial position, and prepare and file applications with the supervisor of insolvency for the implementation of proposals or the administration in bankruptcy on debtors’ behalf.
Once appointed to act with respect to their estates, the trustee conducts further investigations into the debtors’ affairs; receives, verifies, and admits claims by their creditors; identifies, recovers, and manages or disposes of their assets; collects payments and invests estates funds; and, as soon as reasonably practicable, prepares and processes dividend payments to creditors in full or partial satisfaction of their debts.
In addition to direct support, the office also actively educates the public on the provisions of the Insolvency Act and promotes the use of its cost-effective services for those experiencing financial difficulties.
The JBDC believes that strengthening awareness of the insolvency process is especially important now, given the pressures facing the MSME sector. The agency is encouraging entrepreneurs to seek guidance early and consider insolvency as part of responsible financial management.
“We want to destigmatise shame in debt. Openly talking about money and debt makes it easier for people to seek help. Raising awareness that debt is often a result of complex systemic factors, and not necessarily personal failure, is key to engagement. And so, we are looking forward to broader discussions on this topic,” Davis said.
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