THE Small Business Bureau (SBB) will mediate with commercial institutions on behalf of registered entrepreneurs so as to enable them to secure special provisions when they take loans.
This was announced when the Linden Chamber of Commerce (LCC), in collaboration with the SBB of the Ministry of Tourism, recently held a sensitisation meeting with current and potential entrepreneurs.The meeting to edify participants of the benefits of accessing loans through the SBB was held in the Linden Business Centre.
The special provisions include six per cent discount on the interest rate, and assistance with 40 per cent of the collateral required for the loan, the ceiling of which has been set at $30M.
A client who has registered with the SBB will be given a referral that deems him/her qualified for the subsidised terms.
However, it is important to note that the SBB is not a direct lending institution, but its officials are cognisant of the high unemployment rate in Linden and the stringent criteria to access loans from lending institutions.
Approximately 50 interested entrepreneurs attended the meeting, and immediately registered with the SBB after being informed of the numerous benefits that the SBB offers. Most of those entrepreneurs said they did not fulfill eligibility requirements to access loans at commercial institutions such as the banks.
The Linden Enterprise Network (LEN) was launched only last week with the mandate to provide financing for entrepreneurs; and an SBB official has said that LEN should not be deemed to be competing with SBB, as the conditions that obtain at either institution are far different from the other. For instance, LEN offers direct financing, while the SBB does not. Additionally, while LEN’s borrowing ceiling is $1M, SBB refers persons to borrow up to $30M.
During the President’s last visit to Linden, he urged residents to become entrepreneurs, as bauxite production can no longer sustain Region 10. “LEN has opened a new door for self-employment within the region, as this profession (entrepreneur) encourages one to save,” President Granger articulated.
Many Lindeners have taken the President’s admonition seriously; 40 persons have already received loans from LEN, while 50 others have already registered with the SBB at its last meeting.