Dominicans interested in applying for loans from the Agricultural, Industrial and Development Bank (AID) through the Micro, Small and Medium Enterprises (MSME) Facility and the Kalinago Development Fund (KDF) can now do so. The installation officially became available yesterday Monday 14^andMarch 2022.

The announcement was made by AID Bank Chief Executive Marie-Therese Johnson while speaking as a guest of Prime Minister Roosevelt’s Skerrit Annou Pale Talk Show on Sunday evening.

Both facilities were recently launched and are expected to create significant economic opportunities for Dominicans of all backgrounds in all regions of the island.

An amount of $860,000 was paid to the AID Bank to facilitate access to credit for people of Kalinago descent at a preferential interest rate of 2%, while the government lent twenty-seven million four hundred and thirty and one thousand dollars (EC$27.8 m) from the Caribbean Development Bank (CDB) for on-lending to MSMEs, through the AID Bank.

“The application process can start on Monday,” she said. “Bank AID has been involved in disbursing Covid lines and this has helped to streamline processes so that requests can be made over the phone.”

Johnson said under the MSME framework, businesses must be registered with Dominica’s social security and inland revenue division.

She added that individuals must be citizens of Dominica and must present proof of their citizenship or they must be a permanent resident operating in Dominica for more than 10 years.

Johnson explained that the documents required will depend on the nature of the business and the purpose of the funding.

“Let’s take for example a farmer who is requesting funds for cultivation, we will ask for a recommendation from an agricultural extension agent, your client’s usual documentation, proof of identity [Identification], a proof of address, ”she explained. “When we say proof of address it could be a utility bill or a letter from the village council or a letter from your landlord of where you live, we will need invoices for items purchased; financial information including a credit report, bank statement and secure payment agreement must be drawn up. »

Johnson went on to say that the guarantee will also be based on the amount of the MSME facility, which is between EC$8,100 and EC$675,000.

“If we have someone asking between $8,000 and $15,000, secure online payment will be required,” she explained. “If we’re looking at larger loans between $250,000 and $675,000, more tangible collateral would be needed.”

Johnson continued, “For example, a certificate of title and a bill of sale if someone is buying equipment.”

She clarified that money is not a prerequisite for approval; However, if the client has a lack of security, this will be taken into account.

According to her, under MSMEs, the minimum applicants can apply for is $8,100 and the maximum is $675,000.

“Larger amounts can be considered on a case-by-case basis,” she said.

In fact, Johnson noted that a company can apply for funds under the facility more than once, “but we would prefer the facility to be allowed to operate for at least 6 months, so that we can monitor the facility. before giving new funds”.

“For 6 months, the client pays nothing,” she notes.

Meanwhile, regarding the Kalinago Development Fund to be eligible, the applicant must be of Kalinago ancestry and the project or infrastructure being developed must be geographical within the Kalinago Territory. The business must register with Dominica’s social security and tax authorities and the owners of the business must be citizens of Dominica.

She explained that this facility is separate from anything you’ll find in the commercial banking space or at a credit union.

“First of all, the conditions are great,” Johnson said. “You have 2% against 15% that you will attract in commercial banks or at the credit union.”

She continued: “These are very flexible security options, there is absolutely no tangible security required.”

She said what the Kalinagos need to present is a secure payment arrangement.

This includes a standing order on an existing account, a payroll deduction, or an assignment of sales contracts.

“There is also a 6 month grace period,” Johnson said.

They will be required to present ID, proof of address, letter from Kalinago Village Council certifying Kalinago ancestry, letter from Kalinago Village Council certifying land ownership.

Applicants are advised to call 255-9400, 448-2853, 255-9444, 255-9467 or email [email protected]