Micro and Small Businesses Welcome Loan Facility

Entertainment and transport industry stakeholders have welcomed the Government’s provision of two loan facilities, valued $700 million, to support the sectors’ recovery from the economic ravages of the COVID-19 pandemic.

Under the provisions, $500 million is earmarked for on-lending to the entertainment sector and $200 million to public passenger vehicle (PPV) operators by the Development Bank of Jamaica (DBJ), through the entity’s approved financial institutions (AFIs) and microfinance institutions (MFIs).

The entertainment and transport sectors loans will facilitate the target beneficiaries with funds for working capital, debt refinancing and capital expenditure.

Micro entrepreneurs in the entertainment sector, such as bar owners, food vendors, fish fry vendors and organisers of round robins, can access up to $750,000 with a three-month moratorium on principal payments and up to two years for repayments.

Small and medium enterprise (SME) interests can borrow up to $10 million also with a three-month moratorium on principal payments and up to five years for repayments.

Transport operators will be able to borrow up $750,000 with a two-year repayment term and a three-month moratorium on principal payments.

Collateral support is available to all parties under the DBJ’s Credit Enhancement Facility (CEF).

The initiative is being implemented under the theme ‘Ready Fi Di Road Again’.

The Government has also extended a $25,000 grant provision to transport operators under the COVID-19 Allocation of Resources for Employees (CARE) Programme, for which $90 million has already been dispatched for payment to 3,600 successful applicants.

The loans were endorsed by stakeholders attending the facilities’ recent launch at the AC Marriott Kingston Hotel, which was addressed by Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke.

Actress and writer, Dorothy Cunningham, told JIS News that she was “very appreciative” of the fact that the Government “has seen the need, heard the cries, and is responding by doing these activities to help us”.

Ms. Cunningham, who indicated that she represented theatre interests, said she attended to see how members could access and benefit from the entertainment loan.

“When COVID-19 came [and with] it, the lockdowns, it meant that a lot of us who were doing… productions or micro activities [also] had to lock down. So, the fish fries, the round robins, and the parties… the get-togethers, the small plays that [used] to generate incomes, everything [was] locked down,” she informed.

 

Ms. Cunningham said the theatrical community was also affected by a reduction in the number of facilities available to house productions.

She said that the spaces largely utilised “[are] not owned by us… the producers”; so “if you couldn’t do a show to pay the rent, the landlord still had to [find a way to make] money.

“So, a lot of those premises that were used as theatres and performing arts spaces are now either offices, locked down, [or] sold. So, whereas in years gone by, we used to have seven or eight performing spaces, and still complained that we didn’t have enough, now, we’re down to one. The only purpose-built performing space [in Kingston] is the Little Theatre and Little Little Theatre,” the veteran actress outlined.

She added that with the COVID-19 restrictions now lifted, thereby facilitating gatherings and the staging of events, “there is nowhere to go, because Little Theatre is booked solid”.

Against this background, Ms. Campbell said she will be exploring to see whether producers accessing the loan can identify one or several buildings that can be rented at an affordable price and retrofitted with the owners’ permission, “so that we once again will have performing arts spaces.

“I am excited to see how this is going to work out. I know the [loan] offer [will not] be indefinite; so, we do have to find a way of taking it up as soon as possible. While I say all the time that Kingston is not Jamaica, I live in Kingston and this is where most of my work is done; so, I have to, sort of, look at it from that point of view,” she added.

General Manager of the Jamaica Music Society (JAMS), Evon Mullings, declared that the loan announcement “certainly is one which we welcome!”

JAMS, which represents record producers, artistes, and musicians, handles royalty collections generated from the use of their work locally and globally.

Noting that the music and entertainment sectors contribute over four per cent to the national economy, Mr. Mullings said the pandemic’s impact on both was “massive”.

“When other sectors were rebounding and being allowed to reactivate, the entertainment and music industries remained locked down; it was the last to be reopened. So, artistes, performers and other allied stakeholders were out of commission for a long while, and that basically took a huge chunk [not only] out of the economy, but also the pockets of artistes, performers, producers and promoters, and their families,” he told JIS News.

Consequently, Mr. Mullings said the loan provision “I think, will certainly help persons to get back on their feet”.

He also welcomed the collateral support being provided under the CEF, describing the arrangement as “excellent”.

“So, if promoters, record producers, sound-system operators, among others have an opportunity to access this kind of loan to get certain business activities going again, this [will allow them] to really put themselves back in a position to begin earning again,” Mr. Mullings added.

President of the All-Island United Route Taxi Association, Raymond Bynes, said the loan offered to the transport sector “is a good gesture”.

Noting that members have been inquiring about the level of assistance that the Government can extend to assist them in recovering from the pandemic-induced economic fallout, Mr. Bynes expressed the hope that “whatever is given to the transportation sector is dispersed in a quick time” to those applying.

Owner/operator of Blue Diamond Taxicab Company Limited, Milton Chung, said the announcement “sounds [and] seems good”.

“It will help somewhat [and], at least, it’s a step in the right direction. To implement and [for] it to work now, we are waiting to see that part of it,” he told JIS News.

Mr. Chung informed that his business operations contracted by 50 per cent due to COVID-19.

He said this resulted in several of his employees leaving for other pursuits “because they couldn’t manage”.

“But we haven’t had any debts during the pandemic, up to now… thank God for that. So, we are still struggling and trying to move on,” Mr. Chung added.

Co-owner and General Manager of City Guide Taxi Service, Daniel Whyte, said the loan offer “is good… for a start, and we appreciate it”.

He told JIS News that the company lost a significant percentage of their complement of 100 contracted drivers due to the pandemic, noting that the number fell to 30.

Mr. Whyte said some persons departed to pursue alternative engagements, while others migrated overseas.

He indicated, however, that after the relaxation and lifting of the COVID-19 restrictions, which has facilitated increased economic activities, the company has been able to re-employ drivers who returned and attract new staff.

“We have picked back up now and are at about 88 drivers… almost back to the full complement. So, we are doing good, so far, and we give thanks for that,” Mr. Whyte added.

Dr. Clarke, in his remarks at the launch, noted that when economic activities are disrupted by events such as the COVID-19 pandemic, “it hurts all of us, including those who operate on the road”.

Consequently, he said, the Government has taken actions to ensure that that segment of the Jamaican population “has the fuel… has the oxygen it needs to recover”, as has been the case for several other categories of target beneficiaries.

“So, we would have started out with grants in 2020 and 2021, and this year, we are introducing a package of MSME loan products. This must be seen as the Government putting its money where its mouth is and stepping up and providing support,” Dr. Clarke added.

 

The DBJ-affiliated entities where entertainment and transport sectors stakeholders can access the loans are Access Financial Services Limited; Bull Investments Limited; COK Sodality Co-operative Credit Union Limited; Community and Workers of Jamaica Co-operative Credit Union Limited; First Heritage Co-operative Credit Union Limited; JN Small Business Loans; LASCO Microfinance Limited; McKayla Financial Services; and WILCO Finance Limited.