The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Almost 75 percent of the government's $20m small business loan facility has been covered by the nearly-400 applications received to-date, the deputy prime minister revealed yesterday.

K Peter Turnquest told the House of Assembly that existing applicants had requested close to $15m in assistance from the Business Continuity Loan initiative to help micro, small and medium-sized businesses (MSMEs) cope with the economic fall-out from the COVID-19 pandemic.

He disclosed that the government had expanded its MSME assistance by $5m to enable employers to meet staff payroll through grants ranging from $2,000 to $20,000. This will be offered to those who qualify for the Business Continuity Loan.

"The SBDC (Small Business Development Centre) also rolled out the government's $20m COVID-19 response last week, targeted to provide loans to small businesses ranging from $5,000 to $300,000. Approved loans will have a payment grace period of four month," Mr Turnquest said.

"Partnering financial institutions will facilitate the actual loan processing to include the vetting of the required information; the approvals; the issuing of funds; and the collection of payments after the four-month moratorium. These loans are earmarked for operating costs such as paying salaries, rent, insurance utilities and inventory/supplies."

To qualify, MSMEs must be operating with a valid business license for one year or more; generate less than $3m in annual turnover; agree to retain 51 percent of their staff; and have their credit information shard with the newly formed credit bureau and other financial institutions.

Mr Turnquest said that, as at Friday last week, some "616 MSME's registered for assistance with the SBDC and, of that, 382 businesses completed the full application process". He added: "These businesses represent 1,082 full-time employees and 243 part-time employees and, in total, they have formally requested approximately $14.88m in financial assistance."

Mark A Turnquest, a small business consultant, told Tribune Business that his call for the government to provide $50m in such support to MSMEs had been justified by the fact applications to-date were seeking almost 75 percent of the total sum allocated.

However, the deputy prime minister asserted: "The $20m allocated by the government for MSMEs will ensure that all businesses who qualify have the support they need to protect their livelihoods and the families represented by their workforce.

"So far, the Bahamas Development Bank; the Bahamas Entrepreneurial Venture Fund; Cash N' Go; Leno Corporate Services; Omni Financial Group; Simplified Lending; and Fidelity Bank Bahamas have agreed to participate in the programme."