DBJ provides billions of dollars in loans to businesses

By all accounts, the Jamaican economy has rebounded from the shocks brought on by the COVID-19 pandemic between 2020 and 2021. According to information published late last year by the Planning Institute of Jamaica, the local economy increased by 5.2 per cent in the post-COVID period January to September 2022 compared to 4.3 per cent during the same period in 2021.

As development financing organisation, the statistics show that the Development Bank of Jamaica can lay claim to being a part of that success story.

The DBJ’s figures show that in financial year 2022-23, the Bank made 4,602 loans to micro, small, medium-sized and large enterprises across the island in the amount of $5.81 billion.

These loans were made to five sectors with services receiving $3.6 billion from 1,144 loans, followed by distribution receiving $1.1 billion in 2,502 loans, and manufacturing receiving $954 million for a total of 122 loans. Completing the list were agriculture with $155 million from 831 loans, and tourism receiving $11.7 million from three loans. The services sector includes a range of businesses that include information, communication, technology/business processing putsourcing (ICT/BPO), health services, education, energy, among others.

RECOVERED SIGNIFICANTLY

“The business community has recovered significantly after COVID-19 had severely suppressed economic activity across the island. We, at the DBJ, are very pleased to be able to meet the financing needs of businesses at this critical time,” said Helon Whittaker, DBJ’s manager for intermediary relationships.

The DBJ, a government-owned organisation with a mandate to facilitate economic growth and development, provides loans, grants and technical assistance for capacity building to all levels of Jamaican entrepreneurs.

However, the bank does not lend funds directly to all borrowers. Instead, the DBJ’s loans are channelled to sub-borrowers through its network of partner financial institutions which include commercial banks, credit unions and investment houses.

Anthony Shaw, DBJ’s managing director, was positive about the DBJ’s role in the revitalisation of the Jamaican economy. “The DBJ is doing phenomenal work in assisting local MSMEs, not just with loans, but also with grants that support innovative start-ups, Angel funding for those that need equity, collateral support and specific sector support. For example, we have an Agribiz programme for the agriculture sector, micro and small loans for operators in the entertainment and transport sectors, and loans for large companies in strategic sectors of the economy. The DBJ is encouraging all entrepreneurs and would-be entrepreneurs to consider what is available and how the DBJ can assist them. Please call us at 876-929-4000 or visit our website at www.dbankjm.com to get all the details.”