…gov’t says only registered businesses will access funding

OVER 500 persons have already applied to benefit from COVID-19 relief grants set apart by the Ministry of Business’ through the Small Business Bureau.

Speaking during an interview with the Department of Public Information, Minister of Business, Haimraj Rajkumar, explained that a new agency has been set up to organise assistance for small businesses and farmers. The Coordinating Agency for Small Enterprises (CASE) was established under the leadership of His Excellency President David Granger and is aimed at supporting farmers and small business owners and employees.

“CASE, is comprised of agencies from the Ministry of Business and the Ministry of Agriculture and part of its responsibility is to develop measures to alleviate poverty, create employment, stimulate domestic production and consumption of locally produced goods,” Minister Rajkumar explained. He noted that the coalition government is encouraging citizens to buy more locally produced products to support small businesses and to stimulate Guyana’s economy. “We recognise that our small businesses, our farmers, their main activity is farming, agro-processing; producing, manufacturing … so we must boost their activity; produce more locally. Therefore, we are encouraging our citizens to buy more locally-produced items and in doing so you will indirectly support our local industry.”

The council of Ministers has approved the use of local products procured from small businesses, farmers and agro-processors for use by the Civil Defense Commission during their hamper-relief distribution exercises. Minister Rajkumar further noted that the amounts that will be allotted to businesses will depend on the nature and size of the business.

While COVID-19 has impacted the business sector, the grants are intended to serve as a stimulus for small businesses to stay afloat and can be used to offset expenses, pay staff, purchase supplies etc. Application forms can be found on the Bureau’s website www.sbb.gov.gy or their Facebook Page ‘small business bureau Guyana’.

Guyana Chronicle had reported that the aim of the bureau’s initiative was to strengthen and sustain small businesses, through provision of relief grants to sustain business operations and retain employees, along with training and development support to establish and market businesses through online platforms, diversify businesses and forge supply partnerships. Though the bureau has approximately 10,000 businesses on its database, by law, the bureau can only work with those businesses that have been compliant. Only 400 of the registered businesses have been compliant. “There are a lot of expectations on what the SBB can provide to these businesses that are not true. The SBB doesn’t lend any money; we’re not a lending agency, there’s nobody repaying us for anything,” said Chief Executive Officer of the Small Business Bureau, Dr. Lowell Porter, in a previous report.

He suggested that small businesses band together and assess ways in which they could even help each other out. “I advise that they start working together. For example, if you own a restaurant, arrange with a delivery service. I believe there are opportunities, but we need to talk to the clients first and see what is going on, and we just started that process,” Dr. Porter said.

The bureau is also helping clients with the setting up of online platforms and according to Dr. Porter: “They have to maintain an interface with their clientele. If the business can be done online, they can utilize an online portal. If they do not have one, we are reviewing how to help them have an online presence,” Porter said.

Growth for Guyana
Despite the current situation and ailing sectors, the Economic Commission for Latin America and the Caribbean (ECLAC) had predicted that there could be light at the end of the tunnel for Guyana, which is projected to record growth of 56.4 per cent this year.
Guyana, being the only country that is projected to “weather the storm”, was recently warned by the World Bank that the effects of an incomplete general and regional elections, coupled with the effects of the COVID-19 pandemic and falling oil prices, could stymie the country’s potential economic boom.

The World Bank, in its semi-annual report said, real gross domestic product (GDP) growth at constant market prices will be 51.7 per cent.
“Guyana’s economy expanded by 4.7 per cent in 2019, with anticipated oil revenues spurring an expansion in non-trade sectors. Oil production is projected to boost GDP growth to unprecedented levels in 2020. “While this could transform Guyana, there are risks, as illustrated by a still incomplete election outcome, and compounded by falling oil prices and the COVID-19 epidemic. Weak public service delivery and monitoring systems constrain the development of policies to reduce poverty and protect the vulnerable,” said the World Bank.

The International Monetary Fund (IMF), in a report last year, had said Guyana’s $4B annual GDP is expected to expand to about $15B by 2024. The financial institution had said the commencement of oil production will substantially improve Guyana’s medium and long-term outlook. Guyana is projected to be among the world’s largest per-capita oil producers by 2025. The oil sector is projected to grow rapidly, accounting for around 40 per cent of GDP by 2024 and supporting additional fiscal spending annually of 6.5 per cent of non-oil GDP on average over the medium term, which will help meet critical social and infrastructural needs. ECLAC had also said the Guyana Government will receive approximately 14.5 per cent of all oil revenue in 2020.