Project Overview
OVERVIEW
Access to credit for the start-up and growth of SMEs is criticalto achieving the Government of St Kitts and Nevis’ Prosperity Agenda and vision of “a fair share for all”.
Traditional lending institutions in St Kitts and Nevis are hesitant to provide financing to SMEs, without onerous collateral requirements and/or a government guarantee. In the instances where credit is available without onerous collateral requirements, interest rates are prohibitive. This business climate is not conducive to SME growth and national economic diversification.
According to the 2017 budget speech, as at September 2016, the Development Bank of St Kitts and Nevis (DBSKN) had provided 833 loans with a total value of $46.6 million of which $22.4 million was allocated for business loans and the Bank was expected to raise additional funds to expand its lending to SMEs.
The project establishes a US$ 3 m Line of Credit at the DBSKN to improve SMEs access to credit, which will finance approximately 50 sub-loans to SMES in targeted sectors. Sub-loans will be awarded to improve firm competitiveness; upgrade/replace plant and equipment; retool/retrain the workforce; fund project development or innovation; achieve ISO or HAACP standards/certification; and improve marketing towards increasing trade in CARICOM markets.
