The government through the Development Bank of Jamaica (DBJ), has launched the entertainment and transport sector loans.
The loans will allow participants earning less than $15 million to borrow at rates as low as three per cent. This announcement was made during a ceremony on Thursday at the AC Marriott Hotel in Kingston.
The finance ministry says the loans are geared at refinancing micro, small and medium enterprises (MSME) whose cash flows have been impacted by Covid-19, to reduce significantly current monthly loan payments and allow recovery.
Finance Minister Dr . Nigel Clarke, said the DBJ will be utilising a network of financial institutions across Jamaica that focus on the MSME space, to reach more persons.
The loans will be available for three years at an initial two months moratorium.
No collateral is required as a guaranteed facility is being used.
He added, this must be seen as the government putting its money where its mouth is and stepping up to provide support to MSMEs that operate in the entertainment space.
Meanwhile, DBJ’s managing director, Anthony Shaw in speaking about the loans said, the DBJ is carrying out the mandate of the government to use these two new products to help operators in both sectors get back on their feet and allow them to become sustainable.
The DBJ is making $200 million in loans available to the transport sector and $500 million to the entertainment sector.
The micro-lending programme will target taxi operators, bus operators, tour operations and tourism transport operators as well as food vendors, party promoters, bar owners, clothes vendors, fish fry promoters among others.