The Jamaica Manufacturers’ Association Limited (JMA) has always been at the forefront, lobbying for initiatives that will benefit its member companies. One such initiative is the lowering of interest rates on loans.
International Trade Financing
First Global Bank
First Global Bank, has provided a special offer solely for members of the Association in the form of international trade finance opportunities with raw material and equipment financing.
Members are now able to apply for a minimum approved credit of US$200,000 (J$14 million), which will afford them access to a unique loan facility at a special variable interest rate of 7.95% per annum for one year. Members also have the option of paying up to 3 years for equipment financing at a rate of 8.95% yearly. Foreign Currency hedging is also available.
For further information, please contact Michael Willacy or Paula Barclay at 908-2327.
National Insurance Fund (NIF) Credit Facility
Types of Enterprises
Small enterprises employing no more than 10 persons, medium enterprises employing no more than 50 persons
Use of Funds:- Working capital and /or fixed asset purchases for enterprises involved in value added activities.
- Loan Minimum - $250, 000
- Loan Maximum: $5M per project
- No more than 10%
- Interest must be serviced monthly
- Repayment period: Max 48 months – depend on the project
- Moratorium: 6 months on principal to the entrepreneur/enterprise
- Enterprise should be registered at minimum as a sole trader or there should be evidence that they have begun the process to formalize the business within a two month period.
- TRN & NIS numbers are required
- Applications for over J$2M requires a T.C.C.
Business Services Funded by NIF Funds
Funding is available to purchase fixed assets, that is, equipment and machinery; and for working capital, that is, purchase goods, raw materials, advertisement, and other value added expenses:
Projects that can be funded include the following:
1. Light Manufacturing
- Apparel: Clothing, caps, uniforms, dress, uniform
- Furniture: Wooden and metal for house hold, office & business, hotel
- Food Processing: Including poultry and other meats, caned and bottled items, sweets, jams, bread and cakes, restaurant
- Beverages: Carbonated and none carbonated juices, health drinks,
- Chemicals: Detergents and soaps,
- Leather Goods: Belts, hand bags
- Craft Items: All types, straw, wood, leather, paintings
- Block Making
The National Export Import Bank of Jamaica Limited (EX-IM Bank) and the Peoples’ Cooperative (PC) Bank of Jamaica are designated participating financial intermediaries.
For information on how to become a member of the PC Bank click here
JEA/JMA Loan Programme
EX-IM Bank
The National Export Import Bank of Jamaica Limited (EX-IM Bank) working in conjunction with the Jamaica Exporters' Association (JEA) and the Jamaica Manufacturers' Association (JMA) offers loan facilities targeted at small exporters and manufacturers. This loan programme, which provides working capital support, is being funded by the EX-IM Bank and operates on a revolving basis.
The Purpose
The purpose of EX-BED is to help small exporters and manufacturers, who are credit worthy and have a stable business, to finance their working capital requirements and to purchase light equipment as they seek to expand their domestic and export markets.
Loan Amounts
The loan scheme is funded by the EX-IM Bank and administered by the JEA through which eligible exporters can borrow up to J$2 million, while manufacturers can borrow up to J$1.5 million. These loans are on a short term to medium term basis on concessionary terms of financing.
Eligible Borrowers are small exporters or manufacturers who:
• Are linkage customers providing goods and services for the Tourism/Export sectors
• Employ less than fifty (50) permanent persons, and
• In the opinion of the JEA/JMA are:
• Export ready
• Have excess capacity
• Members of the JMA with respect to JMA loans
Loans are available for:
- Raw Material Purchases, repayable in 90 days
- Receivables Financing, repayable in 120 days
- Light equipment purchase, repayable up to 18 months
Interest Rate
Interest is charged at the rate of 12 % per annum. Other charges relate to processing costs.
Documentation Required
A bank guarantee will not be required; however, borrowers will be required to demonstrate their credit-worthiness and their ability to service the loan. Applicants must provide:
- Current financial Statements
- Up-to-date Tax Compliance Certificates (TCC)
- Personal Guarantees
Where do I Apply?
Visit http://www.eximbankja.com/application.htm for application form
All completed forms must be sent to the JEA or the JMA, and not to the EX-IM Bank.
For further information, contact the EX-IM Bank directly or:
JAMAICA MANUFACTURERS' ASSOCIATION
Tel: 922-8880/2, 922 -8869
Email: jma@cwjamaica.com
JAMAICA EXPORTERS' ASSOCIATION
Tel: 920-6702, 960 -8884/4908
Email: jea@exportja.org
(Source: http://www.eximbankja.com/exbed.html)
Sponsored in part by the Jamaica Public Service Company Limited (JPSCo).