To be qualified under the Small Business/Micro Sector Program the applicant must satisfy the following conditions:
• Business MUST be REGISTERED;
• Management – Owner;
• Number of persons employed – less than 25; or
• Manufacturing area – less than 4,000 sq ft; or
• Investment in equipment – less than EC $135,000; or
• Total annual sales – less than EC $337,500.00.
Purpose/Use of Funds:
The funds for the Small Business loans could be utilized for all aspects of business including working capital. Financing may be used for startup activities or expansion of existing operations. It may be used for, but not limited to, the following:
• The purchase of machinery and equipment;
• The purchase of stock;
• The purchase of vehicles related to the business not including bus and taxis;
• Working capital;
• Any other purpose as determined by the Management Committee.
Areas of Funding:
• Tools, equipment and working capital loans to small contractors;
• Information technology services;
• Support for cruise ship jobs.
• Light manufacturing;
• Tourism (including water taxis);
• Retail trade;
• Support services to the productive sector.
• 3% for agroprocessing, fishing and agricutural sectors.
• 6% for all other sectors.
• Loan shall be repaid over a period not exceeding 10 years.
• A grace period not exceeding 1 year for principal and 3 months for interest.
• The loan may cover up to 90% of the financing and equity contribution of 10%.
• All businesses must be registered;
• All business must have a business plan that is prepared by a qualified independent party;
• The plan should be of a standard acceptable to the bank;
• Training, mentoring and/or handholding must be done by the GIDC or any other qualified individual or business entity on a need basis, based on the discretion of the Bank.
• As far as possible, all loans should be secured.
Types of Security:
• Legal mortgage;
• Bill of Sale (on machine, equipment, appliances);
• Cash deposit;
• Shares from reputable firms, etc.