The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government-sponsored venture capital fund's vice-chairman yesterday said the 'one-time' $5 million capital injection into the fund, in addition to its annual $1 million subvention, will be a "tremendous help" in addressing the backlog of funding applications.

Edison Sumner, also the Bahamas Chamber of Commerce and Employers Confederation's (BCCEC) chief executive, told Tribune Business: "We had this discussion leading into the Budget. There is going to be a one-time $5 million capital injection into the Fund, and that is going to be in addition to the annual subvention into the fund of $1 million.

"We are going to see coming into the fund this year a one-time payment of $5 million, and that will help us address the backlog of applications we have had, and also expand the portfolio of the fund by being able to invest in a lot more businesses."

Finance Minister, K Peter Turnquest, during his 2017-2018 Budget communication reiterated an FNM campaign commitment to provide a $5 million infusion into the Bahamas Entrepreneurial Venture Fund.

"The Government will continue to provide the annual investment of $1 million. Between what has already been provided by the previous administration and what's coming in this fiscal term, we will have just over $6 million in the fund. That is going to be a tremendous help to the fund. It has never happened before. We are excited about this new injection coming in," said Mr Sumner.

He added: "The backlog of applications is not very significant, but when you think about the fact that we had to decline some applications because the funding wasn't there, and others were put on the reserve list until we could get the resources to invest in them, the additional funding is much welcomed.

"This also opens the door for more companies to come in and apply for funding."

Mr Sumner said the Fund was moving away from debt financing to more equity investments. "People just have to ensure that they have good management and good people around them to help them sustain and grow the business," he added.

"We are able to now assign mentors to those companies and put some of our members on the Board of these companies to ensure that the interest of the Fund is being protected."