–SBB urges local banks, in bid to do more for their clients

THE Small Business Bureau (SBB) has issued a call to local commercial banks to work with them in order to improve the accessibility to finance for potential and existing entrepreneurs.

Entrepreneurs complain that one of their major challenges is access to finance, so the SBB has been trying to make the process easier, said Chief Executive Officer (CEO), Dr. Lovell Porter at a recent press conference.

He said that only Republic Bank and the Guyana Bank for Trade and Industry GBTI) partnered with them last year, while the Institute of Private Enterprise Development (IPED) had assisted with two micro-financing projects.

According to statistics presented by Porter, the SBB facilitated 50 approved loans valued at $270 million in 2017.

Although the amount of loans decreased from the number in 2016, Dr. Porter said the value was larger than they expected.

“We only met 51 per cent of our target last year for loans facilitated, but it does not depend solely on us because the banks have their criteria,” Dr Porter said, adding that they could have met their 100 per cent mark if more banks were on board.

He believes that if more banks come on board, more persons will be able to benefit because in addition to facilitating loans, the Bureau uses its interest subsidy to pay the interest on loans for the clients who meet a certain criteria.

Despite the many setbacks, Dr Porter said the Bureau intends to maintain its screening process to ensure that those persons who acquire loans are the persons who really need it.

REVOLVING FUND
In order to compensate for the lack of banking and lending partners, the government had approved $100M for a Business Revolving Fund which will be directed by the SBB.

Dr. Porter explained that it will make access to finance easy for persons who meet the requisite criteria.

“I hope everybody sees it as a help and be willing to repay the loan, because it is a small sum,” he said.

In addition to that, he pointed out that a Green Business Development Fund will be implemented to fund persons who have a business idea that is in line with the Green State Development Strategy.

Through the “green fund” persons, who are clients of the SBB, will receive $1M to fund the research and development aspect of their business plan.

Asked how many of their clients have gone on to become successful businessmen or women, Dr Porter said an impact intervention study last year revealed that 60 per cent of the businesses were still viable.