Persons Encouraged to Take Advantage of Entertainment and Transport Sector Loans

Target beneficiaries of the Government’s $700-million entertainment and transport-sector loans are being encouraged to take advantage of the offers.

The funds are earmarked for onlending by the Development Bank of Jamaica (DBJ) to stakeholders whose income-earning activities were disrupted by the COVID-19 pandemic.

A total of $500 million is programmed for the entertainment industry and $200 million for the transport sector.

These will be disbursed through the DBJ’s approved financial institutions (AFIs) and microfinance institutions (MFIs).

The money can be used for working capital, debt refinancing, and capital expenditure. Collateral support is available under the DBJ’s Credit Enhancement Facility (CEF).

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

Both facilities were unveiled during a recent launch at the AC Marriott Kingston Hotel, which was addressed by Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke.

Veteran actress and writer, Dorothy Cunningham, who attended, said the entertainment-sector loan provides “a great opportunity, I think, for all of us to rise to the fore, seize the [moment], and see what we can do with it”.

“I’m excited to see how this is going to work out. I know the offer [will not] be indefinite, so we do have to find a way of taking it up as soon as possible,” she told JIS News.

Against this background, Ms. Cunningham said she will be sharing the information she garnered with producers and other stakeholders within the theatrical community, which she represented, and inviting them to “[see] what [we] do… so that we get a piece of the pie”.

“This is a big thing… and I think the important thing for all of us to do is to find out where do we fit into that jigsaw [puzzle]. So, I am hopeful… optimistic that this will bear good fruits,” she added.

 

Jamaica Music Society (JAMS) General Manager, Evon Mullings, said he is hopeful that there will be a “good take-up” of the entertainment-sector loan, adding that he is anticipating the supporting publicity.

“I’m hoping that it is highly publicised. I’d love to see the DBJ, the AFIs and MFIs making a big thing of it, so that it is known and that persons can take advantage of the opportunity that it provides,” he told JIS News, adding that “we (JAMS) will make it known to our members also”.

Co-owner and General Manager of City Guide Taxi Service, Daniel Whyte, in welcoming the provision to the transport sector, maintained that “if the Government is giving us a loan with collateral support, persons should give consideration to accepting it and just have a try at it”.

Owner/operator of Blue Diamond Taxicab Company, Milton Chung, who described the offer as a “step in the right direction”, expressed the hope that public passenger vehicle (PPV) operators will take it up and that those borrowers “will repay their loans in reasonable time, so that it can revolve and help other people”.

Micro entrepreneurs in the entertainment sector, such as bar owners, food and fry fish 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 loan repayments.

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

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.

Dr. Clarke urged the DBJ to “ensure that everybody is aware of these two loan facilities” and encouraged the AFIs and MFIs to sensitise their clients as well.

“This is precious taxpayers’ dollars that we’re lending, and we’re doing it… to resuscitate our economy. But it only works if people are aware of it. So, I hope you’ll put posters up within your institutions, within the branches which you operate, and on your social media platforms. I encourage you to champion it among your customer bases. We are depending on you [because] it’s a big deal,” he said.

Dr. Clarke advised that the DBJ will be providing the funds to the lending institutions at a rate of three per cent.

He indicated that these entities will “assess their risks and administrative costs and come to the market with their differential rates”.

While acknowledging that these institutions would need to make a margin to cover the associated costs, the Minister emphasised that “at the end of the day, we want the loans to be taken up”.

“So, I want you to think of yourselves as long-term partners and resolve to make the [returns] over a long period of time,” he added.

Dr. Clarke maintained that “this is the Government working for the people of Jamaica” and “making sure that financing is available to MSMEs… to everybody and, most importantly, to all the people ‘on di road’ [who were impacted by COVID-19].”

 

Managing Director, DBJ, Anthony Shaw, said the Bank has “long and in-depth” negotiations on the latest loan products with its partner financial institutions.

This, he added, enabled them to come to an arrangement “that will ensure that you [the target beneficiaries] will enjoy the best possible rates in the market”.

General Manager for DBJ’s Channels, Relationships and Marketing Division, Edison Galbraith, advised that the bank will be rolling out “a very, very aggressive campaign to get this [initiative] on the road”.

“We can definitely guarantee… that we’re going to be on the road. We will be working very closely, as we have done on other facilities, with our MFI partners; they will be doing joint marketing and co-marketing with us as well. So, we will be on social, physical, traditional, all over the media. We will be out there,” he assured.

 

DBJ-affiliated entities where persons can apply for 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.