Do you need col­lat­eral?

The DBJ’s Credit En­hance­ment Fa­cil­ity can help

Jamaica Gleaner - - GROWTH & JOBS -

GUIDED BY re­search into the chal­lenges con­strain­ing ac­cess to fi­nanc­ing by small and medium-sized en­ter­prises (SME), the De­vel­op­ment Bank of Ja­maica (DBJ) has im­ple­mented sev­eral ini­tia­tives, in­clud­ing the Credit En­hance­ment Fa­cil­ity (CEF), to as­sist the sec­tor.

The CEF pro­vides par­tial loan guar­an­tees to DBJ-ap­proved lenders, al­low­ing them to make more loans to SMEs, par­tic­u­larly to sup­port other­wise sound SME loans that do not have suf­fi­cient col­lat­eral to meet the lender’s re­quire­ments.

Un­der the CEF, par­tial loan guar­an­tees are avail­able for up to $15 mil­lion or 50 per cent of the value of a loan. In the case of en­ergy ef­fi­ciency and re­new­able-en­ergy projects, the CEF pro­vides cov­er­age of up to 80 per cent, up to a max­i­mum of $15 mil­lion. And in so far as small loans (that is, loans up to a max­i­mum of $6.25 mil­lion) are con­cerned, the CEF will cover 80 per cent, up to a max­i­mum of $5 mil­lion.

Since its in­cep­tion, the DBJ has pro­vided CEF guar­an­tees of $1,084 mil­lion, al­low­ing more than 280 SME sub-bor­row­ers to ac­cess loans of over $2,280 mil­lion through 14 lenders.

For more in­for­ma­tion, con­tact the DBJ or your fi­nan­cial in­sti­tu­tion to­day.

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