DBJ Funding Available For Mining Entities

The Development Bank of Jamaica (DBJ) is reminding entrepreneurs in the mining industry that they can access funding through the bank’s credit facility for small and medium-sized enterprises (SMEs).

Account Executive at DBJ, Mark McKenzie, informed that through its network of approved financial institutions (AFIs), the DBJ guarantees loans of up to 80 per cent for entities, up to a maximum of $15 million.

He was addressing a mining sector stakeholders meeting at JAMPRO recently.

Mr. McKenzie said SMEs can receive financing for the acquisition or maintenance of equipment and machinery, including motor vehicles.

He informed that to benefit from the facility “the entrepreneur must be prepared to inject at least 10 per cent equity in the project, the business must be appropriately registered, the plan must be technically and financially viable, and it should be making a positive contribution to the economy.”

He pointed out that if the entrepreneur has spent money for the project, such as land preparation or transportation costs, this can be included in the 10 per cent equity.

Mr. McKenzie informed that that the DBJ also offers re-financing and consolidation of loans for mining SMEs.

In addition, entities can benefit from the DBJ’s Voucher For Technical Assistance programme.  Under this initiative, grants of up to $300,000 are provided for capacity development, which could include the development of a business plan, financial statements, business process improvement or marketing plans. “Each SME can get up to two of these vouchers,” Mr. McKenzie informed.

Mining entities can also receive up to $50 million under the World Bank Growth Loan package available for exporters.

The interest rates for the loans will be determined by the particular AFI and is calculated on the reducing balance.

Mr. McKenzie said the rates are very competitive, noting that, “I have seen rates between 8.5 and 10 per cent.”

He further added that customers can receive up to seven years to repay this loan, and can also benefit from a break on the principal repayment of up to 12 months.

In the meantime, Mr. McKenzie said that the DBJ recently added retail and distribution to their list of SMEs that they assist.