MSMEs renew concerns about access to funds allocated through DBJ

 

Some business interest groups have expressed scepticism that the $2 billion earmarked for the development of Micro, Small and Medium Enterprises (MSMEs) will benefit their members and the local economy.

 

During the opening of the Budget Debate on Tuesday, Finance Minister Fayval Williams said the government has set aside $2 billion in the 2025/26 budget for the Development Bank of Jamaica (DBJ) to facilitate sustainable growth of start-ups and MSMEs.

 

Speaking Wednesday on Radio Jamaica 94FM's Beyond the Headlines, MSME Alliance President Antoinette Hamilton said the issue for small to midsize businesses was never about availability of funds but accessibility to loans. 

 

"The issue for our members, the ones that we interact with, is the access, the fees, the interest rates, the administrative, the audited financials for two years, the other fees that they have to pay, credit reports, et cetera. These are the hinderances for our members to access the facility that is available to them," she outlined.

 

She noted that the Finance Minister's budget presentation revealed that the concerns of MSMEs have fallen on deaf ears. 

 

"The government failed to listen to our concerns. It was never a misconception as to what was the issue. We have said it in the media. It has been reported. Access to financing was the issue, not availability of financing. And maybe we can do a research to see how much money DBJ sends back to the Consolidated Fund every year," Ms. Hamilton suggested, adding that the MSME Alliance has repeatedly called for the removal of fees associated with accessing loans at the DBJ and tax reform.

 

The group wants newly registered companies to be exempted from corporate income tax for two years.

 

In the meantime, President of the Small Business Association of Jamaica (SBAJ), Garnett Reid, said his 16,000 members islandwide, with over 4,200 registered, also find it difficult to access loans to develop their businesses.

 

He said while the DBJ will distribute the funds to commercial banks for on-lending to MSMEs, these operators encounter much bureaucracy in seeking to access loans as the banks require a list of items including a business plan, articles and projections. 

 

"Even though they have equity, they will have a title, but they need all of these instruments. So access to funding is a very great problem. And I mentioned earlier on that I hope that DBJ, who sends the money on to commercial banks, will ensure that...the red tape is loosened where small and medium-sized enterprises are concerned," he contended.