Development Bank of Jamaica: Empowering Jamaicans Through Financial Solutions
Development Bank of Jamaica (DBJ) provides development financing and capacity building solutions to enhance the quality of life for all Jamaicans. With a focus on various sectors like agriculture, energy, and tourism, DBJ offers business loans, grants, and strategic support to viable enterprises. To qualify for DBJ loans, businesses need to meet criteria for ownership, viability, and compliance. The DBJ also offers support for loan purposes ranging from construction and expansion to innovative projects. Additionally, the National Insurance Fund provides eligibility criteria for SMEs seeking financial assistance.
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Presentation Transcript
Presenter: Sonji Johnson Account Executive Loan Origination
MISSION The Development Bank of Jamaica provides opportunities to all Jamaicans to improve their quality of life through development financing, capacity building, public private partnership and privatization solutions in keeping with Government policy.
WHAT DOES THE DBJ HAVE TO OFFER? BUSINESS LOANS CAPACITY BUILDING - VTA COMPLEMEN TARY PRODUCTS ENERGY AUDIT GRANT; CEF
TARGET MARKET Viable enterprises/projects in the productive sector Projects of varying sizes: micro, small, medium and large Current emphasis on linkages, social inclusion
STRATEGIC SECTORS Agriculture Agro-processing Energy Manufacturing Mining & Quarrying Services Tourism
CRITERIA FOR DBJ LOANS 662/3% Jamaican Ownership Operating in Jamaica Tax compliant (over J$2M) Technically & Financially viable Equity Injection: 10%-30% Based on Line of Credit Exceptions Purchase of Land/Buildings Acquisition of Businesses Refinancing
LOAN PURPOSES Construction & Expansion of structures Establishment of Crops & Livestock Modification of structures To purchase Machinery & Equipment Innovative projects - Animation Energy-saving Projects Tourist Attractions & Wellness Projects Purchase Movable Fixed Assets
NATIONAL INSURANCE FUND ELIGIBILITY CRITERIA SME MUST PROVIDE: TRN SMES with revenues up to J$150M and employs up to 50 persons NIS TAX COMPLIANCE CERTIFICATE number and expiry date Enterprise must at least be a Sole Trader BUSINESS REGISTRATION NUMBER AND DATE OF REGISTRATION where applicable
NATIONAL INSURANCE FUND OTHER TERMS MONITORING & IMPACT JOB RETENTION INTEREST RATE TO AFI 5.5%; RATE TO SME 10.0% INCREASED EMPLOYMENT SMES CAN BORROW UP TO $15M IMPROVED FINANCIAL PERFORMANCE MAX REPAYMENT TERM UP TO 8 YEARS SME ACHIEVED ITS OBJECTIVES MAXIMUM MORATORIUM PERIOD 6 MONTHS SME CLOSER TO BEING SUSTAINABLE
CREDIT ENHANCEMENT FUND FOR SMEs Benefits of the CEF Qualifying for CEF Reduces risk of lending to SMEs Available to SMEs Only Tax compliant Supplements Available Collateral Project viability Allows viable SMEs to access credit for expansion Proven track record
CREDIT ENHANCEMENT FUND FOR SMEs The DBJ will guarantee: 50% of DBJ funded SME loans up to J$10M 80% of Energy Loans up to a maximum of J$10M.(Conditions apply) SME loans funded with the AFIs own funds - 50% of the loan up to J$5M
APPLYING FOR THE CEF Cover Letter Completed CEF Application Loan & Guarantee application done simultaneously (for DBJ funded facilitates) AFI to provide quarterly reports for monitoring purposes
ENERGY AUDIT GRANT Available to businesses within the productive sector Maximum of J$200,000 per audit excess is borne by Client We do not facilitate reimbursement for audits previously done
ENERGY AUDIT GRANT PROCESS Client selects Auditor from DBJ s list; negotiates with Auditor Receives quotation and submits application to DBJ with supporting documents SELECTION OF ENERGY AUDITOR DBJ reviews application and issues commitment/refusal letter DBJ issues commitment letter to Auditor to cover cost of audit within the established limit Maximum 5 working days COMMITMENTS Applicant and auditor to indicate commencement date of audit prior to payment of mobilization fees 1st payment (mobilization) is made to energy Auditor Energy Audit begins may take up to 40 days ENERGY AUDIT &TERMS
LOAN APPLICATION PROCESS AFI signs LOC, pays commitment fee and requests disbursement AFI makes repayments, supervises and manages loan account AFI appraises and approves Loan application AFI submits application to DBJ DBJ approves Loan and returns LOC
DOCUMENTATION Application Cover Letter DBJ s Loan Application Form Copy of AFI s Internal appraisal including financial statements ADMINISTRATIVE FEES Sub-borrower s TRN Commitment fees 1% plus GCT TCC (over J$2M) Copies of other relevant documents Prepayment penalty Flat 3% plus GCT
LOAN DISBURSEMENT Commitment Fees 1% plus GCT Signed Letter of Commitment Signed Disbursement Application Promissory Note - Signed & Sealed Stamp Duty Commissioner of Stamp and Estate Duties - J$5,000
