MSME Welcomes NCB’s $1B Growth Fund

Former President of the Medium, Small and Micro, Enterprise, MSME Alliance, Donovan Wignall, is welcoming NCB’s creation of a one-billion dollar SME Growth Fund as a good first step.

The Growth Fund was announced by NCB earlier this week to assist SME’s with low cost financing.

The move comes amid continued outcry from all corners regarding the high interest rates being charged by commercial banks.

Mr. Wignall says this initiative must be built upon to satisfy the needs of the sector.

Chevon Campbell, tells us more.

NCB says the fund will be available from March 31, 2025.

It will remain open until the full allocation is disbursed.

NCB CEO Bruce Bowen says SME Growth Fund is part of a broader strategy to ensure that more entrepreneurs can invest in their businesses, expand their operations, drive job creation and build long-term success.

Businesses have been urging the nations commercial banks to reduce their interest rates which have remained stubbornly high despite Bank of Jamaica’s recent reductions.

NCB says the fund will also provide a special interest rate reduction of up to 3-percent on loans for working capital and capital expenditure projects.

Additionally, NCB is applying a zero-point-25-percent reduction across all SME loan products.

Mr. Wignall welcomed the initiative but called for some clarity.

Eligible businesses must have annual revenues between 15 million and four-hundred-and-25 million dollars, registered for at least two years, and have been in operation for a minimum of one year.

However, Mr. Wignall still believes the government should utilise its deposits in financial institutions as a potential bargaining chip to get further concessions.

Meanwhile, Industry Minister, Aubyn Hill, similarly welcomed the launch of the move.

He’s encouraging further action on the part of all banks.