Credit Guarantee Scheme Supports Small Businesses

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Business News

Saturday, 18 August 2012 02:30

By press release

Antigua St. John’s - With the required financial backing from the Ministry of Finance and the Economy now in place, the Antigua & Barbuda Development Bank (ABDB) has been able to issue a number of loan guarantees under the government of Antigua & Barbuda Credit Guarantee Scheme.

The Small Business Development Act of Antigua & Barbuda was designed to among other things, facilitate the growth of the small business sector. The Credit Guarantee Scheme, which is an integral component of the ACT, provides loan guarantee coverage to approved small businesses that have applied for a loan guarantee cover under the Scheme.
 
The purpose of the loan guarantee cover is to provide a guarantee of up to 80% of the amount sought by a business that has insufficient security to cover their required borrowings for working capital and or other financing needs. ABDB may, under this Scheme, provide guarantee for the insufficiency of the security up to a maximum of EC $50,000 for each small business based on the assessed need.
 
ABDB General Manager, Mr. Donald Charles said that both existing as well as new businesses can benefit from the support being offered under the Credit Guarantee Scheme as they will be able to access loan funds from participating financial institutions that will allow them to expand or start up their operations with the resultant positive impact on the economy in relation to jobs and growth.
 

He added that based on the support provided by the Ministry of Finance, ABDB is in a position to cumulatively guarantee coverage of up to EC $1 million in the first instance. However, the bank has been assured by the Honorable Harold Lovell, Minister of Finance and the Economy who is totally committed to ensure the success of this initiative, that more financial support will be made available so that the cumulative guarantee coverage can be increased as required.
 
The credit guarantee scheme is open to any small business that has attained approved small business status from the Antigua & Barbuda Investment Authority (ABIA). A small business that is desirous of applying for a loan guarantee cover under the Credit Guarantee Scheme may be an individual, partnership, a corporate body, cooperative or association of individuals or an enterprise.
 
Approved small businesses that wish to apply for credit guarantee cover under the Scheme should contact the ABDB who will undertake a preliminary review of their Business Plan and thereafter direct them to a participating financial institution that would be best positioned to provide the required funding.

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