The Access to Finance Project (A2F) is a partnership between the Government of Jamaica and the World Bank. The A2F Project is being executed by the Development Bank of Jamaica (DBJ). The project consists of 4 components geared towards the development of financial instruments/products that will support the MSME ecosystem. Notably products being development by the A2F programme are: Reverse Factoring, SME Fund and supporting the DBJ’s Credit Enhancement Fund (CEF).
Here’s a list of Frequently Asked Questions about the Access to Finance Project:
1. What is the Credit Enhancement Fund?
The Credit Enhancement Fund is designed to provide collateral support to MSMEs who may have no or insufficient collateral to access funding.
2. What is the SME Fund and how will it help MSMEs?
The A2F Project will support the establishment of US$ 15 million public-private SME Fund of 10 years extendable to 12 or 15 years, which would provide US$100K- US$2 million (US$750,000 average amount) in risk capital to established SMEs with high growth potential and with operations in Jamaica, but that have not been deemed investment worthy by private equity funds constraints.
3. What are the Eligibility Criteria for MSME’s under the CEF?
• Annual Turnover < J$425 million • Business should be in operation for 24 months • Start-ups in operation for over a year • Credit worthy companies or individuals (enterprises operating in Jamaica with at least 51 percent Jamaican ownership. • Company Registered
4. How much funds can MSME’s have guaranteed?
• 80% up to a maximum guarantee coverage of J$30 million for GENERAL MSME loans. • 90% up to a maximum guarantee coverage of J$10 million for small loans up to J$11 million for Small Loans. • 80% up to a maximum guarantee coverage of J$5 million for start-up enterprises.
5. What is the turnaround time for gaining the CEF for an entrepreneur?
An eligible MSME applying for the CEF should be approved within a week. This may vary based on MSME AFI.