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.
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.
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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CIBC First Caribbean
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 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
VM Wealth Management
Micro Finance Institutions
Access Financial Services
JN Small Business Loans
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
The DBJ’s aim is to facilitate the growth and development of all viable enterprises in the Jamaican economy which includes:
- INFORMATION TECHNOLOGY
- •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.
- 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.
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.
- 3.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: firstname.lastname@example.org
- Information Requested from new applicants for Approved Financial Institution (AFI) Status
- •Energy Audit Grant – Application more
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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 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
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.