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Presenter: Sonji Johnson Account Executive Loan Origination. MISSION. - PowerPoint PPT Presentation
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Presenter:Sonji Johnson
Account ExecutiveLoan Origination
MISSION
The Development Bank of Jamaica provides opportunities to all Jamaicans to improve their quality of life through development financing, capacity building, public private partnership and privatization solutions in keeping with Government policy.
WHAT DOES THE DBJ HAVE TO OFFER?
COMPLEMENTARY
PRODUCTS – ENERGY
AUDIT GRANT; CEF
CAPACITY BUILDING - VTA
BUSINESS LOANS
TARGET MARKET
• Viable enterprises/projects in the productive sector
• Projects of varying sizes: micro, small, medium and large
• Current emphasis on linkages, social inclusion
STRATEGIC SECTORS
•Agriculture•Agro-processing•Energy•Manufacturing •Mining &
Quarrying •Services •Tourism
CRITERIA FOR DBJ LOANS
662/3% Jamaican Ownership
• Operating in Jamaica • Tax compliant (over J$2M)• Technically & Financially viable• Equity Injection: 10%-30% Based
on Line of Credit
Exceptions Purchase of Land/BuildingsAcquisition of Businesses
Refinancing
Employment
generationFX
Earning/Saving
Linkages between Sectors
Promotion & Expansion of
new & existing
enterprises
LOAN PURPOSES
Establishment of Crops & Livestock
Construction & Expansion of structures
Modification of structures
To purchase Machinery & Equipment
Innovative projects -
Animation
Energy-saving Projects
Tourist Attractions &
Wellness Projects
Purchase Movable Fixed
Assets
DBJ RATE SHEET
NATIONAL INSURANCE FUND
ELIGIBILITY CRITERIA SME MUST PROVIDE:
• SMES with revenues up to J$150M and employs up to 50 persons
• Enterprise must at least be a Sole Trader
• TRN
• NIS
• TAX COMPLIANCE CERTIFICATE – number and expiry date
• BUSINESS REGISTRATION NUMBER AND DATE OF REGISTRATION – where applicable
NATIONAL INSURANCE FUND
OTHER TERMS MONITORING & IMPACT
• INTEREST RATE TO AFI – 5.5%; RATE TO SME – 10.0%
• SMES CAN BORROW UP TO $15M
• MAX REPAYMENT TERM – UP TO 8 YEARS
• MAXIMUM MORATORIUM PERIOD – 6 MONTHS
• JOB RETENTION
• INCREASED EMPLOYMENT
• IMPROVED FINANCIAL PERFORMANCE
• SME ACHIEVED ITS OBJECTIVES
• SME CLOSER TO BEING SUSTAINABLE
CREDIT ENHANCEMENT FUND FOR SMEs
Benefits of the CEF Qualifying for CEF
• Reduces risk of lending to SMEs
• Supplements Available Collateral
• Allows viable SMEs to access credit for expansion
• Available to SMEs Only
• Tax compliant
• Project viability
• Proven track record
CREDIT ENHANCEMENT FUND FOR SMEs
The DBJ will guarantee:▫ 50% of DBJ funded SME loans
up to J$10M
▫ 80% of Energy Loans up to a maximum of J$10M.(Conditions apply)
▫ SME loans funded with the AFIs own funds - 50% of the loan up to J$5M
APPLYING FOR THE CEF
• Cover Letter
• Completed CEF Application
• Loan & Guarantee application done simultaneously (for DBJ funded facilitates)
• AFI to provide quarterly reports for monitoring purposes
ENERGY AUDIT GRANT• Available to businesses
within the productive sector
• Maximum of J$200,000 per audit – excess is borne by Client
• We do not facilitate reimbursement for audits previously done
ENERGY AUDIT GRANT PROCESS
SELECTION OF ENERGY AUDITOR
• Client selects Auditor from DBJ’s list; negotiates with Auditor
• Receives quotation and submits application to DBJ with supporting documents
COMMITMENTS
• DBJ reviews application and issues commitment/refusal letter
• DBJ issues commitment letter to Auditor to cover cost of audit within the established limit
• Maximum 5 working days
ENERGY AUDIT &TERMS
• Applicant and auditor to indicate commencement date of audit prior to payment of mobilization fees
• 1st payment (mobilization) is made to energy Auditor• Energy Audit begins – may take up to 40 days
LOAN APPLICATION PROCESS
AFI appraises
and approves
Loan applicatio
n
AFI submits
application to DBJ
DBJ approves Loan and returns
LOC
AFI signs LOC, pays commitment fee and requests
disbursement
AFI makes repayments, supervises
and manages
loan account
DOCUMENTATION
Application
• Cover Letter• DBJ’s Loan Application Form• Copy of AFI’s Internal
appraisal including financial statements
• Sub-borrower’s TRN
• TCC (over J$2M)• Copies of other relevant
documents
ADMINISTRATIVE FEES
• Commitment fees – 1% plus GCT
• Prepayment penalty – Flat 3% plus GCT
LOAN DISBURSEMENT
Signed Letter of Commitment
Commitment Fees 1% plus GCT
Signed Disbursement Application
Promissory Note - Signed & Sealed
Stamp Duty Commissioner of Stamp and Estate Duties - J$5,000
QUESTIONS AND COMMENTS