(Excerpt from RJR News Online dated February 4, 2015)
The Development Bank of Jamaica (DBJ) has announced changes, which take immediate effect, to its loan guarantee programme, the Credit Enhancement Facility (CEF).
The Facility was established to increase access to credit for small and medium-sized enterprises (SMEs) which do not have adequate collateral to secure loans.
The most significant change is the increase in the maximum value of a guarantee from $10 million to $15 million, to cover up to 50 per cent of a DBJ SME loan.
SMEs seeking loans of up to $30 million can now have the support of a guarantee for 50 per cent of the loan amount, while entities seeking larger loans will be capped at $15 million.
Meanwhile, in an effort to encourage the adoption of energy efficiency and renewable energy projects by SMEs, the CEF will now provide guarantees for up to 80 per cent of energy-related loans.
The new maximum is $15 million, provided the approved financial institution holds a first charge on the business assets.