The Tobago House of Assembly will guarantee loans ranging from a minimum of $750,000 to a maximum of $3 Million, covering up to 80% of the total loan value, as the twenty five million dollar loan guarantee program was launched in Tobago on Tuesday.
This according to Finance Secretary Petal-Ann Roberts, as she spoke on a Tobago morning show, on Tuesday. More in this Elizabeth Williams report.
00:00We are allowing the banks to continue their criteria, so we are not getting involved in that.
00:07I have admonished, I have asked the banks, do not waver, do not compromise your policies on your granting of loans, and we expect that your criteria will continue.
00:19According to Finance Secretary Petalan Roberts, initially, three banks are on board with the process.
00:25They are Scotiabank, First Citizens Bank, and Republic Bank, with credit unions and other financial institutions being looked at for involvement in the future.
00:37The loan guarantee caters to registered businesses.
00:41I want to make this very, very clear that there are only three banks so far, but my long-term vision is that credit unions and all the other financial institutions will sign on to this.
00:52But right now, we only have Republic Bank signed on, First Citizens Bank and Scotiabank.
00:59The THA has committed to seven years for repayment of the loans.
01:04One other thing I forgot to mention, that the loan period is seven years.
01:08So, as the loan is repaid, the funds go back into the guarantee fund, and other persons can access.
01:17Also, we do intend to top up and increase the guarantee amount in the account every year.
01:25We do have an allocation, we have a line item called Loan Guarantee Program.
01:28So, when the government gives us our parliamentary appropriation, obviously, you know, we will supplement it if it doesn't have sufficient.
01:35Because, you know, normally we will ask for a specific amount.
01:37We don't get it, and we normally shift funds around.
01:40So, we intend to do that.
01:41Every year, we're going to put some monies into the fund.
01:44The fund, though, this year is starting with $25 million.
01:47She explained that businesses can apply if they need to purchase equipment, ramp up operations, or improve business effectiveness.
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