Presenter:Sonji Johnson

Account ExecutiveLoan 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?

COMPLEMENTARY

PRODUCTS – ENERGY

AUDIT GRANT; CEF

CAPACITY BUILDING - VTA

BUSINESS LOANS

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/BuildingsAcquisition of Businesses

Refinancing

Employment

generationFX

Earning/Saving

Linkages between Sectors

Promotion & Expansion of

new & existing

enterprises

LOAN PURPOSES

Establishment of Crops & Livestock

Construction & Expansion of structures

Modification of structures

To purchase Machinery & Equipment

Innovative projects -

Animation

Energy-saving Projects

Tourist Attractions &

Wellness Projects

Purchase Movable Fixed

Assets

DBJ RATE SHEET

NATIONAL INSURANCE FUND

ELIGIBILITY CRITERIA SME MUST PROVIDE:

• SMES with revenues up to J$150M and employs up to 50 persons

• Enterprise must at least be a Sole Trader

• TRN

• NIS

• TAX COMPLIANCE CERTIFICATE – number and expiry date

• BUSINESS REGISTRATION NUMBER AND DATE OF REGISTRATION – where applicable

NATIONAL INSURANCE FUND

OTHER TERMS MONITORING & IMPACT

• INTEREST RATE TO AFI – 5.5%; RATE TO SME – 10.0%

• SMES CAN BORROW UP TO $15M

• MAX REPAYMENT TERM – UP TO 8 YEARS

• MAXIMUM MORATORIUM PERIOD – 6 MONTHS

• JOB RETENTION

• INCREASED EMPLOYMENT

• IMPROVED FINANCIAL PERFORMANCE

• SME ACHIEVED ITS OBJECTIVES

• SME CLOSER TO BEING SUSTAINABLE

CREDIT ENHANCEMENT FUND FOR SMEs

Benefits of the CEF Qualifying for CEF

• Reduces risk of lending to SMEs

• Supplements Available Collateral

• Allows viable SMEs to access credit for expansion

• Available to SMEs Only

• Tax compliant

• Project viability

• 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

SELECTION OF ENERGY AUDITOR

• Client selects Auditor from DBJ’s list; negotiates with Auditor

• Receives quotation and submits application to DBJ with supporting documents

COMMITMENTS

• 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

ENERGY AUDIT &TERMS

• 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

LOAN APPLICATION PROCESS

AFI appraises

and approves

Loan applicatio

n

AFI submits

application to DBJ

DBJ approves Loan and returns

LOC

AFI signs LOC, pays commitment fee and requests

disbursement

AFI makes repayments, supervises

and manages

loan account

DOCUMENTATION

Application

• Cover Letter• DBJ’s Loan Application Form• Copy of AFI’s Internal

appraisal including financial statements

• Sub-borrower’s TRN

• TCC (over J$2M)• Copies of other relevant

documents

ADMINISTRATIVE FEES

• Commitment fees – 1% plus GCT

• Prepayment penalty – Flat 3% plus GCT

LOAN DISBURSEMENT

Signed Letter of Commitment

Commitment Fees 1% plus GCT

Signed Disbursement Application

Promissory Note - Signed & Sealed

Stamp Duty Commissioner of Stamp and Estate Duties - J$5,000

QUESTIONS AND COMMENTS