Thu | May 28, 2020

Do You Need Collateral? The DBJ’s Credit Enhancement Facility Can Help

Published:Monday | October 3, 2016 | 12:00 AM

Guided by research into the challenges constraining access to financing by small and medium-sized enterprises (SME), the Development Bank of Jamaica (DBJ) has implemented several initiatives, including the Credit Enhancement Facility (CEF), to assist the sector.

The CEF provides partial loan guarantees to DBJ-approved lenders, allowing them to make more loans to SMEs, particularly to support otherwise sound SME loans that do not have sufficient collateral to meet the lender's requirements.

Under the CEF, partial loan guarantees are available for up to $15 million or 50 per cent of the value of a loan. In the case of energy efficiency and renewable-energy projects, the CEF provides coverage of up to 80 per cent; up to a maximum of $15 million. And in so far as small loans (that is, loans up to a maximum of $6.25 million) are concerned, the CEF will cover 80 per cent, up to a maximum of $5 million.

Since its inception, the DBJ has provided CEF guarantees of $1,084 million; allowing more than 280 SME sub-borrowers to access loans of over $2,280 million through 14 lenders.

For more information, contact the DBJ or your financial institution today.