JAMAICA | $700-million DBJ loan support for Entertainment and Transport Operators
KINGSTON, August 13, 2022 - The Government of Jamaica (GOJ), through the Development Bank of Jamaica (DBJ), has launched the Entertainment and Transport Sector Loans that will allow participants earning less than $15 million to borrow at rates as low as three (3) per cent. This announcement was made during a ceremony on Thursday, August 11, 2022, at the AC Hotel by Marriott in Kingston.
The loans are geared at refinancing Micro, Small and Medium Enterprises (MSMEs) whose cash flows have been impacted by COVID-19, to significantly reduce current monthly loan payments and allow recovery.
Minister of Finance and the Public Service, Dr. Nigel Clarke, in his keynote address stated that the DBJ will be utilising a network of financial institutions across Jamaica that focus on the MSME space, to reach more persons.
“These loans will be available for three (3) years at an initial two months moratorium and in terms of the need to provide collateral, that need will be non-existent. There is no collateral required because we will be using a guaranteed facility. But even though there is no collateral required you have to pay back the loan.”
He added, “This must be seen as the government putting its money where its mouth is and stepping up in providing support to MSMEs that operate in the entertainment space… It’s a big deal!”
Meanwhile, DBJ’s Managing Director, Anthony Shaw in speaking about the loans said, “As a Government entity, the DBJ is carrying out the mandate of the Government to use these two new products to help operators in both sectors back on their feet, so to speak, and allow them to become sustainable.”
He also mentioned, “This is another example of how well the Government and the private sector are working together to bring tangible benefits to the Jamaican business community, regardless of size or prominence. In this case, it is to increase the form of low-cost loans to the entertainment and transportation sectors of the MSME business community.”
The DBJ is making $200 million in loans available to the transport sector and $500 million to the entertainment sector. The loans are available at Access Financial Services Limited, Bull Investments Limited, COK Sodality Co-operative Credit Union, Community and Workers of Jamaica Co-operative Credit Union, First Heritage Co-operative Credit Union Limited, JN Bank Small Business Loans, Lasco Micro Finance Limited, Mckayla Financial Services and WILCO Finance Limited.
The micro-lending programme will target taxi operators, bus operators, tour operations and tourism transport operators as well as food vendors, party promoters, bar owners, clothes vendors, fish fry promoters and more.