Anthony Hylton, opposition spokesperson on industry and investment, is today (January 30) welcoming the announcement that the Security Interests in Personal Property Act 2013 will soon be incorporated into a more comprehensive range of collateral options.

In a statement this afternoon, Hylton argued that though its implementation was long-delayed, micro-, small- and medium-sized (MSME) operators would finally be able to include inventory, accounts receivables and intellectual property as collateral in seeking access to finances for their operations.

The shadow industry spokesperson remained hopeful that financial institutions will quickly update internal systems and administrative mechanisms as well as train staff to implement the new legislation and ensure a smooth phase-in.

Moreover, Hylton challenged the government to invest more in education and training to ensure success in implementing what he calls revolutionary legislation so that the MSME community build their internal capacity to take advantage of this expanded opportunity which will be a game-changing initiative.

“Each MSME operator must make the changes necessary to prepare their organisation to take advantage of this new opportunity,” he argued.

Ahead of its March 2023 completion, the Jamaica Intellectual Property Office (JIPO) revealed last week that it had been engaged in a pilot project to train evaluators in assessing the value of intellectual property (IP) for small businesses.

The project, launched in March 2021, was undertaken by JIPO in collaboration with the Inter-American Development Bank (IDB), Caribbean Development Bank (CDB) and Compete Caribbean Partnership Facility.

Lilyclaire Bellamy, executive director of JIPO, explained to JIS News that the Security Interests in Personal Property Act makes provisions for businesses to tap into more ranged collateral options, besides land, to access secured loans.

These include inventory, accounts receivables, and intellectual property and are aimed at offsetting limitation challenges MSMEs experience when seeking to access financing for their operations.

The two-year pilot project has an overarching goal of supporting the Act’s implementation by addressing gaps in Jamaica’s intellectual property ecosystem, to create the conditions for IP commercialisation and collateralisation.