383 Loan Guarantees, Valued $4.85 Billion Issued under DBJ’S CEF

A total of 383 loan guarantees, valued at $4.85 billion, were issued under the Development Bank of Jamaica (DBJ) Credit Enhancement Facility (CEF) over the past year, enabling micro, small and medium-sized enterprises to scale up their operations.

General Manager of the CEF, David Wan, made the disclosure at the CEF Superstars Awards event held on Wednesday (August 14) at the Courtyard Marriott in Kingston.

Aimed at significantly increasing access to credit for MSMEs, the CEF provides Approved Financial Institutions (AFIs) and Micro Finance Institutions (MFIs), with additional collateral coverage on loans extended to MSME operators.

This collateral coverage serves to mitigate risks for the AFIs and MFIs, enabling them to extend credit to a wider range of MSMEs, thereby fostering business growth and economic development in the country.

Mr. Wan said that the total stock of guarantees has grown impressively from $1.98 billion in March 2021 to $5.5 billion in March 2024.

“We have seen this support translate into tangible results with the number of loans backed by guarantees increasing from 458 in 2021 to 1,092 in 2024. These numbers are more than just statistics; they represent real businesses, real jobs, and real stories of perseverance and growth,” he pointed out.

During the 2023/2024 financial year, the DBJ facilitated more than 6,000 loans valued at $10.74 billion and secured $31 billion in investments.

These efforts have not only spurred economic activity but also created more than 700 potential new jobs while preserving nearly 9,000 existing ones.

Throughout the past year, the CEF has been able to offer even larger loan guarantees of up to $50 million.

This expansion allows the organisation to extend support to even more MSMEs, helping them to scale up and realise their full potential.

Meanwhile, during the CEF Superstars Awards, participating financial institutions and individual business bankers were recognised for outstanding contribution in enabling access to loans for MSMEs through the CEF.

National Commercial Bank (NCB) dominated the individual awards with first place going to Business Banker, Tolcia Barnes from the Mandeville Branch; second place was Business Banker, Stacy-Ann Harrison-Hyde from the Linstead Branch; with Business Banker, St. Ann’s Bay branch, Davia Neale-Forrest, copping the third-place award.

In terms of the Financial Institutions awards, NCB walked away with first place, Sagicor Bank secured the second-place spot and First Global Bank came in third.

An award was also presented to the Lasco Financial Group, which was recognised as the top micro lender for the year.

Mr. Wan said that the CEF Superstars event is more than just an awards ceremony.

“It is a recognition of the hard work and commitment that each of you has shown in enabling access to credit for our micro, small, and medium-sized enterprises (MSMEs). These businesses are the heartbeat of our economy, and your efforts are what keep that heartbeat going strong,” he noted.

Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, in his remarks, said: “I want to commend the DBJ for pioneering a solution through their Credit Enhancement Facility. What I love about CEF is that it reduces the risk that would normally be associated with lending to MSMEs and provides the opportunity for eligible MSMEs with viable plans to receive access to term loans.”