Dear Clients,
Be aware of three (3) new products that will be jointly launched in a few days by the Development Bank of Jamaica (DBJ) and the Ministry of Finance and the Public Service (MOFPS),under the Social & Economic Recovery (SERVE) Recovery Program.
1. J$1Billion -GoDigital loan
2. J$28Billion MSME Recovery Loan Facility
3. GoDigital Voucher for Technical Assistance
The new programs are designed to accelerate the digital transformation of MSMEs, expand the business to business (B2B) market for digitization services as well as to reduce the debt servicing burden for viable new and existing micro, small and medium sized enterprises (MSMEs) and to help them recover from COVID-19 and become resilient.
It should be noted that these facilities will be offered for a limited period up to the earlier of 31 March 2022, on a first-come-first-serve basis.
As Business Development Officers for the DBJ we want you to be aware of the opportunity and to help you to apply for the facility, ensuring that you meet the banks' requirements ie.ensuring that your financials and business plans are up to speed and ready before the funds are depleted since the allocation will be on a first-come-first-serve basis.
We look forward to collaborating with all our new and existing clients so that you can avail yourselves of these facilities
Please contact us urgently in this regard.
Some more details under:
J$1 BILLION MSME GO-DIGITAL LOAN FACILITY
The Go-Digital Loan Facility serves to increase the adoption of cutting-edge technology among MSMEs in Jamaica and to facilitate a vibrant market for digitization service providers. Digital transformation has been proven to help businesses increase revenue and profitability, better reach and retain customers and control their supply chains while becoming more resilient against disruptions.
The facility may be utilized to digitize your business and also presents opportunities for you to grow your businesses.
MSMEs with revenues not exceeding J$425 million p.a. will be able to access the loans through participating financial institutions to fund hardware, software and other services for digitalizing their businesses and these services may be procured through the suppliers of their choice once supported by invoices acceptable to their financial institution.
The features of the Facility include but are not limited to the following:
1, Loan Limit per sub-borrower J$800,000;
2. Use of Loan Funds To invest in software & hardware that enables digital transformation services,
E-commerce & Digital payment solutions. Including the acquisition & training in software including Cloud Infrastructure, Cyber security, digital productivity tools & business applications.
3. DBJ will fund up to 90% of the project cost (MSME must provide 10%); Maximum Interest Rate to MSME - 2% per annum (fixed) on the reducing balance. Loan Tenure up to 3 years ; Repayment Terms - Principal & Interest Repayable monthly; Maximum Moratorium (on principal): 3 months;
3. J$200,000 GO-DIGITAL VOUCHER (GRANT) Micro and small enterprises (MSEs) with revenues not exceeding J$75 million are also eligible to access -Digital Voucher for Technical Assistance (VTA) grant of up to J$200,000 towards the cost of software and other services required to digitalize their businesses (but not hardware). These services are only accessible to Business Development Organizations (IT-BDOs) (visit www.dbjvoucher.com).
4. J$2 BILLION MSME RECOVERY LOAN FACILITY The MSME Recovery Loan Facility serves to enable lenders to reduce the debt service burden for MSMEs with viable projects that are either seeking to expand, pivot to take on new opportunities or to refinance high cost debts and give businesses time to recover from the effects of Covid-19. MSMEs with revenues not exceeding J$425 million p.a. will be able to access the loans through participating financial institutions to fund new projects and to refinance high interest cost debts.
The features of the Facility include but are not limited to the following: Loan Limit per sub-borrower J$10M; Use of Loan Funds - Working capital support, new capital expenditure projects, debt consolidation, refinancing of high interest rate business loans, business overdrafts and business credit cards and purchase of real estate for use by the business.
DBJ will fund up to 90% of the project cost (MSME must provide 10%); Maximum Interest Rate to MSME - 5% per annum (fixed) on the reducing balance. Loan Tenure up to 8 years ; Repayment Terms - Principal & Interest Repayable monthly; Maximum Moratorium (on principal):12 months;