Micro, Small and Medium Enterprises (MSMEs) now have two new products aimed at helping them rebound and grow their businesses from the Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC).
Speaking on the ECCB Connects programme, Chief Executive Officer of the ECPCGC Carmen Gomez-Trigg said that in addition to the organisation’s Classic Guarantee programme, it has added the Working Capital Guarantee and the Start-up Guarantee.
The Working Capital Guarantee product, Gomez-Trigg explains, targets small businesses which have been in operation for two or more years and have been adversely affected by the COVID-19 pandemic. Such small business owners can look at their pre-covid revenue, see their shortfall and benefit from this facility as they seek to rebound. Under this facility, the ECPCGC has relaxed some of its requirements asking small businesses for 10.0 per cent of the equity required, down from 25.0 per cent under its classic guarantee. Additionally, the beneficiaries will pay the interest only for the first year after which they will begin the full repayment of the loan.
The ECPCGC is offering another product, the Start-up Guarantee, which is designed particularly for Start-up small businesses. Under this facility, small businesses in operation for three to 24 months will have access to a loan of up to EC$100,000 where the ECPCGC will guarantee up to 80.0 per cent.
To qualify for assistance through the ECPCGC, small business owners must ensure that their businesses are registered, that they establish a relationship with their financial institution and keep proper records.
The Monetary Council of the ECCB established the ECPCGC to facilitate additional financial intermediation for MSMEs. The ECPCGC works in collaboration with commercial banks in the region to help small business owners increase their access to finance. The Organisation provides to the commercial banks, some of the collateral the small businesses are unable to produce to access financing.
For more information on the ECPCGC and the products the organisation offers, view this week’s episode of ECCB Connects on the ECCB website www.eccb-centralbank.org and its social media pages.