Medium-sized businesses in the manufacturing and agro-processing sectors are set to benefit from a financial boost as Sagicor Bank Jamaica (SBJ) launches a new credit facility designed to assist them to retool and expand their operations.

SBJ’s Manufacturing and Agro-processing loan, funded with an initial pool of J$1 billion, will allow eligible clients to borrow a maximum of J$50 million with interest rates as low as 6.5 per cent per annum.

Chorvelle Johnson Cunningham, Sagicor Bank Jamaica’s chief executive officer, said the facility was created to facilitate these types of Jamaican businesses to position themselves for growth, as the economy begins to recover from the harshest effects of the COVID-19 pandemic.

FACILITY TO COME ON STREAM FEBRUARY 1

“Through this offer, Sagicor Bank will assist medium-sized businesses in these industries to obtain funding, thus enhancing more operational efficiency, export expansion possibilities, retooling, and import substitution,” Johnson Cunningham said.

The facility, which is to come on stream on February 1, 2022, will allow borrowers up to 12 years to repay each loan.

Johnson Cunningham noted that small manufacturing and agro-processing firms have been working to increase their performance since the beginning of the COVID-19 pandemic, despite the economic challenges caused by the virus. She said the manufacturing sector, in particular, is one of the few industries that created export opportunities during COVID-19.

“What we’ve found is that our local manufacturers and Agro-processors have shown tremendous resilience, even as they continue to grapple with the economic fallout spawned by the pandemic,” Johnson Cunningham stated further. “Yet, there are still several factors that limit their ability to recover as quickly as they would like to, such as the depreciation in the foreign exchange rate, which in turn drives up their operating costs. Also, they are challenged by inadequate modern machinery and working capital. This facility will provide them with a much-needed hand-up to bolster their productivity.”

The bank CEO noted that, in addition to financing the businesses, Sagicor Bank will also provide technical and analytical support to its clients through its relationship managers and Small and Medium Enterprise (SME) Business Resource Centre.

“Sagicor Bank is pleased to continue to support and invest in our local entrepreneurs, as we strive to create more opportunities for them to maximise their potential for growth both at home and overseas, and in so doing, help to develop Jamaica,” Johnson Cunningham added.