Growth & Jobs | DBJ ramps up collateral backing for MSMEs under Export Max
Published:Monday | December 3, 2018 | 12:00 AMChristopher Serju/Gleaner Writer
The Development Bank of Jamaica (DBJ) will provide critical financial support for the Export Max III programme targeted at micro, small and medium-size businesses to help them meet globally competitive standards.
DBJ General Manager for Strategic Services Christopher Brown told the guests at last Thursday's launch that this will be channelled through a special credit-enhancement facility by which it will provide collateral support of up to 80 per cent, a significant increase from its standard 50 per cent guarantee.
"The DBJ is here again to support Export Max III to provide support for at least 50 firms. We believe that this programme aligns squarely with the DBJ's mission to provide opportunities for all Jamaicans to improve their quality of life through development financing capacity-building, in keeping with the Government's policy," the financier told business operators attending the launch at Spanish Court Hotel, New Kingston.
He advised: "The DBJ is a key partner with all the participants in this journey and will be able to provide appropriate solutions to their business growth. After you have received the capacity-building and been able to penetrate new markets, when you are ready to access financing, the DBJ has a programme that will provide collateral support. Up to 80 per cent of the collateral that would be required could be guaranteed by the DBJ for the expansion of your particular businesses. This is whether you need to buy new equipment to be able to meet these new markets or for working capital support."
It is projected that at the end of three years, participants would have achieved a 50 per cent growth, on average, in export sales and entered at least one new export market. To help them get up to speed, the DBJ will provide collateral guarantee up to a maximum of J$15 million per loan, even for loans from other financial institutions, according to Brown.
"If you are borrowing, say J$6.25 million, we would guarantee 80 per cent of that loan. So you would have to find the difference in collateral to support your application. The range of interest varies because for a DBJ loan, you would get it at 9.5 per cent, but if you go to a regular commercial bank, their rate may be different. However, you still can access the facility even if the loan you are getting is not DBJ-funded," he told The Gleaner.