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
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
• TRN
• Enterprise must at least be a
Sole Trader
• TAX COMPLIANCE
CERTIFICATE – number and
expiry date
• NIS
• 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%
• JOB RETENTION
• 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
• Allows viable SMEs to
access credit for
expansion
• 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
• DBJ reviews application and issues commitment/refusal letter
COMMITMENTS
ENERGY AUDIT
&TERMS
• DBJ issues commitment letter to Auditor to cover cost of audit within the established
limit
• Maximum 5 working days
• 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
application
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