Loans through Approved Financial Institutions (AFIs)

ABOUT DBJ LOANS

The Development Bank of Jamaica provides loans for Micro, Small & Medium-sized Enterprises (MSMEs) with annual revenues of up to $150 million and fewer than 50 employees.

The DBJ channels loan funding primarily through AFIs, whose roles include:

Evaluating the financial strength and creditworthiness of project promoters and determine its willingness to extend the requested credit.
Establishing the terms, maturity and security/collateral requirements to satisfy its credit determination.
Providing regular supervision of the project through site visits.
Managing the loan account and liaising with the client.

LOAN FEATURES

We offer value added loan products to MSMEs which features:

Up to 90% financing*
Up to 10 years to repay*
Competitive Interest Rates calculated on the reducing balance offered in both JMD and USD denominations.
Flexible moratorium on principal repayment of up to 24 months.

LOAN PURPOSES

The DBJ will approve loans to business entities operating in Jamaica for the purpose of:

Construction, Expansion and modification of structures for operation of the business. (within the eligible sectors outlined above
Establishment of crops and livestock enterprises
Purchase of machinery and equipment, software and other assets required to operate the business
Purchase of moveable fixed assets
Permanent Working capital
Rehabilitation/Renovation of existing enterprises
Energy conservation, efficiency and renewable energy
Tourist attraction and wellness projects

LIST OF DBJ’s APPROVED FINANCIAL INSTITUTIONS

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AFI’s

CIBC First Caribbean
Citibank N.A.
COK Sodality Cooperative Credit Union
Credit Union Fund Managers
First Global Bank Limited
First Heritage Cooperative Credit Union (FHCCU) Limited
Jamaica Co-Operative Credit Union League
Jamaica Defence Force (JDF) Cooperative Credit Union
Jamaica Money Market Brokers Ltd
JMMB Merchant Bank Limited JMMB
JN Bank
JN Fund Managers Limited
Mayberry Investments Limited
National Commercial Bank Jamaica Limited
National Export-Import (EXIM) Bank Jamaica
National People’s Cooperative Bank of Jamaica Limited
NCB Capital Markets
NCB Cooperative Credit Union
Palisadoes Cooperative Credit Union
Proven Wealth Ltd.
Sagicor Bank Jamaica Limited
Sagicor Investments Jamaica Limited
Scotiabank Jamaica
VM Wealth Management
VMBS

Micro Finance Institutions

Access Financial Services
JN Small Business Loans
Micro Credit
First Heritage Cooperative Credit Union
St. Elizabeth Cooperative Credit Union
St. Thomas Cooperative Credit Union
McKayla Financial Services
First Union Financial Company
Proactive Financial Services
Bull Investments

STRATEGIC SECTORS

The DBJ’s aim is to facilitate the growth and development of all viable enterprises in the Jamaican economy which includes:

AGRICULTURE
AGRO-PROCESSING
ENERGY
INFORMATION TECHNOLOGY
INFRASTRUCTURE
MANUFACTURING
MINING
SERVICES
TOURISM
RETAIL AND DISTRIBUTION

GENERAL ELIGIBILITY FOR DBJ AFIs LOANS

DBJ’s approval will be conditional on projects being considered for loans meeting the following criteria:

Business must be registered and operating in Jamaica.
The project should be financially viable & technically feasible
Enterprises should be tax compliant
The project will make a positive contribution to the economic development by:
- Employment generation
- Foreign exchange earnings and/or savings
- Promotion of new businesses and expansion of existing enterprises for economic growth
- Creating linkages with other sectors
- Facilitating energy conservation
- Facilitating high utilization of local raw materials

HOW MUCH CAN I BORROW?

The DBJ will lend up to 70 percent of the cost for large projects.
For small and medium-sized enterprises (SME), the DBJ will lend up to 90 percent of the project cost.

EXCLUSIONS

DBJ will not lend to sub-borrowers for the acquisition of businesses
The DBJ does not provide financing for speculative purposes such as real estate and construction of property for rental or leasing
The DBJ does not facilitate overdrafts or revolving lines of credit

The DBJ does not facilitate refinancing; however, consideration will be given for expenditure made by the project up to twelve (12) months prior to the date of submission to the DBJ.

ADMINISTRATIVE FEES

Commitment fees – 1% plus GCT (An annual recommitment fee of 1% plus GCT is chargeable on undrawn balances)

APPLYING FOR A DBJ LOAN

The Development Bank of Jamaica (DBJ) does not lend directly to clients as funds are channelled through our Approved Financial Institutions (AFI) partners for on-lending to sub-borrowers engaged in the productive sectors. AFIs provide the credit evaluation and loan supervision.

Applying for a DBJ loan is easy and includes clearly defined steps as follows:

Visit your preferred AFI and request a DBJ loan
The AFI then appraises the project and once the assessment is favourable the AFI applies to DBJ for funding for the project.
The DBJ then disburses funds to AFI for on-lending once the DBJ’s internal appraisal is favourable.

Development Bank of Jamaica Ltd.
11A – 15 Oxford Road,
Kingston 5, Jamaica W.I.
Tel: (876) 929-4000-2
Fax:(876)929-6055
e-mail: mail@dbankjm.com

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PRIMARY TARGET GROUP

Micro, Small & Medium-sized Enterprises (MSMEs)

DBJ defines MSME enterprises as those with annual sales less than J$425M

ENTERPRISE CATEGORIES

Enterprise Size	No. of Employees	Total Annual Sales / Turnover
Micro	≤ 5	≤J$10 million
Small	6 – 20	> $10 million ≤ J$50 million
Medium	21 – 50	> J$50 million ≤J$150 million
Medium Plus	51 – 150	> J$150 million ≤J$425 million
Large	>150	>J$425 million

INTEREST RATES

The maximum interest rates to project beneficiaries will depend on the prevailing rates at a particular point in time. Interest is charged on the reducing balance and is subject to annual review. Currently, interest rates range from 9.5% -10% to the sub-borrower.