NBD Partners with ECPCGC to Introduce Small Business Guarantee Programme The National Bank of Dominica Ltd (NBD) has collaborated with the Eastern Caribbean Partial Credit Guarantee Corporation (EPCGC) to provide a loan guarantee programme to small and medium-sized businesses.
NBD became the first financial institution in Dominica to participate in this loan guarantee programme, after signing the ECPCGC Participatory Lenders Agreement in June 2020. Through this programme, NBD will grant loans to SME’s that are partially guaranteed by the ECPCGC. Applicants will first be reviewed by NBD via its loan application process. The proposal will then be submitted to the EPCGC for review under the programme. NBD and ECPCGC will offer partial guaranteed loans to those borrowers whose cash flow is sufficient to repay the loan but may have any of the following issues:
- Inadequate collateral
- Lack of guarantors
- Business of a higher risk
- A new sector with which the lender does not have sufficient experience, or some other factor
which makes the loan ineligible for approval by the lender. ECPCG was established by the International Finance Corporation (IFC), member of the World Bank Group, and the Eastern Caribbean Central Bank (ECCB) to facilitate financing to micro, small and medium-sized businesses by offering a loan guarantee programme.
NBD has contributed to the development of micro, small and medium-sized businesses over many years. The Bank understands the critical role that startups and growing businesses play in our communities and our lives. That is why they continue to partner with customers who are entrepreneurs and small business owners.
NBD recognizes that the COVID-19 global pandemic has had significant impact on the MSME sector. As such, they are delighted to provide an offer that will benefit the entire economy by making it easier for small businesses to access funding for growth and expansion.
This article is copyright © 2020 DOM767
