Barbadians are Benefitting from the Enhanced Credit Guarantee Fund

Two Barbadian entrepreneurs recently became the first business owners to use the Enhanced Credit Guarantee Fund (ECGF) to secure loans for their enterprises.

Peter Odle, Chairman of The Mango Bay Group, used the ECGF to secure funding for a photovoltaic system for his company’s newest property and was pleasantly surprised how efficient the process was. “I truthfully thought that it would take forever to get the loan when I applied, however, in two days I heard back from RBC with the good news.”

Rene Wade, Managing Director of Motofitt Inc. was also able to obtain the funding necessary to grow his company as a result of the guarantee offered through the ECGF. Wade recently made his business a full time endeavour and needed a loan to expand his fleet of vehicles. He, too, had a positive experience. “On my side, it was just getting everything together that they needed. Once I had everything finalized, then I received a decision within the first week.”

The efficiency of the application and approval process for the ECGF is a deliberate effort to make the facility a viable option for small and medium enterprises, and it stands to become a key selling point not only for applicants, but also for the local financial institutions that administer it. Representatives from RBC Royal Bank and First Citizens, the first two financial institutions to use the ECGF, commended the modernised system. Meryl Stoute, Team Leader of RBC’s Business Banking, said the online submission of information and financial institutions’ ability to approve applications “are major plusses for the Fund”, while Kay-Anne Brathwaite, Senior Manager at First Citizens, described the process as “very straightforward” and added that it was “fast, transparent and easy to register.” Both believe this structure will allow more small businesses to access the credit they need.

The Enhanced Credit Guarantee Fund is a collaboration between the Central Bank of Barbados and the Inter-American Development Bank. It provides the necessary security for small and medium enterprises to more easily access business development loans from approved financial institutions.

Businesses can use the Fund to guarantee up to 80% of their loans and up to a maximum of BBD$2 million per guarantee. The loan can be used to finance the purchase of land and buildings, equipment and machinery; the expansion and improvement of infrastructure; the implementation of new technology, techniques and processes; and to increase permanent working capital.

2016-07-18