–making more money available for borrowers to grow their business

WHEREAS in the past, residents of Region Ten (Upper Demerara-Berbice) could have only accessed up to G$1M as a business loan, these days they can borrow even more funds, based on a case-by-case evaluation.

This was confirmed by LEN Chairman Orrin Gordon, who said that there was need to raise the ceiling and this is now being done based on the proposal submitted by the client, such as their business plan or evidence of their cash flow.

There was also need to raise the ceiling, he said, since LEN would have expanded its horizon into the various industries. LEN, he said, is placing a lot of emphasis on agriculture and food security, and seeing tangible transformation in this and other sectors, such as construction and the hospitality industry, by giving entrepreneurs more financing space.

As Gordon explained, the ceiling is no longer at a fixed amount, and is determined by what is presented to the credit committee. If a client wants to borrow $10M, this does not mean that they will access that amount.

A WELCOME INITIATIVE
Victor Fernandes, President of the Linden Chamber of Commerce (LCC), a partnering entity with which LEN works closely, said that the raising of the ceiling is something that the Chamber and the entire business community of Linden welcomes, since $1M was kind of restrictive. “It gives people an opportunity to really build their capacity. Now they can really do something that is tangible, and clients will be able to see transformation, since they can actually do something to finance their situation.” Fernandes said that the LCC also applauds LEN for listening to the people and stakeholders, and that he is optimistic that this move will not only be benefit to the business sector, but help turn around the fortunes of Linden as well.

Chairman of the Economic Development Committee Lawrence Simon also welcomes the decision taken by LEN, and is now calling on Lindeners to take advantage of the opportunity, as persons from the various sectors can tap into the service and venture into bigger and even more profitable business projects. “Lindeners should take advantage of this and boost their businesses in terms of quantity and quality, so that they can be able to compete on the free market, where we have persons coming from other areas to trade their products in the township,” Simon said.

GO MORE PUBLIC
He is also calling on LEN to make the change more public, so that more persons can be informed about how they can benefit from the service, and to lower some of the requirements to access these loans.

LEN, he said, should also engage in more training programmes as it relates to business development for small entrepreneurs, and involve stakeholders such as the Linden Mayor and Town Council and the Regional Democratic Council in the process.

Since the launch of its five-year strategic development plan, LEN has been targeting every sector where diversification is possible, such as agriculture, manufacturing, construction, and hospitality. It has also targeted several of the outlying communities in Region Ten to sensitise residents on the kinds of services they offer, and how they, too, can tap into them.

LEN’s interest rate is still eight per cent across-the-board, and the age requirement is still 18 to 65 years old. LEN also accepts communal and group applications. For 2019, the Government of Guyana would have made $200M available to LEN.