Dominicans interested in applying for loans at the Agricultural Industrial and Development (AID) Bank through the Micro, Small and Medium Enterprises (MSMEs) facility and the Kalinago Development Fund (KDF) can now do so. The facility officially became available yesterday Monday 14th, March 2022.
The announcement was made by General Manager of the AID Bank, Marie-Therese Johnson while speaking as a guest on Prime Minister Roosevelt Skerrit Annou Pale Talk Show on Sunday night.
The two facilities were recently launched and are expected to create significant economic opportunities for Dominicans from all walks of life in every part of the island.
An amount of $860,000 has been disbursed to the AID Bank to provide easier access to credit for people of Kalinago ancestry at a concessionary interest rate of 2%, while government loaned twenty-seven million, four hundred and thirty-one thousand dollars (EC$27.8m) from the Caribbean Development Bank (CDB) for on-lending to the MSMEs, through the AID Bank.
“The application process can begin on Monday,” she said. “The AID Bank has been involved in the disbursement of Covid lines and that has helped to streamline the processes so applications can be done via telephone.”
Johnson said under the MSME’s businesses must be registered with the Dominica Social Security and the Inland Revenue Division.
She said further that persons must be citizens of Dominica and are required to show proof of their citizenship or they must be a permanent resident operating in Dominica for over 10 years.
Johnson explained that the documents required will depend on the nature of the business and the purpose of the funding.
“Let us take for example we have a farmer who is requesting funds for crop cultivation, we will request a recommendation from agricultural extension officer, the usual know your customer documentation, proof of ID [Identification], 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 reside, we will require invoices, for the items that are being purchased; financial information to include credit report, bank statement and a secure payment arrangement needs to be established.”
Johnson went on to state that security will also be based on the amount for the MSME’s facility which is between EC$8100 to $675,000.
“If we have someone applying between $8000 and $15,000 a secured payment arrangement payment online will be required,” she explained. “If we are looking at larger loan sizes between $250,000 to $675,000, more tangible security would be required.”
Johnson continued, “For example a certificate of title and bill of sale if someone is purchasing equipment.”
She made it clear that cash is not a prerequisite for the approval; however should the client have a security shortfall then that will be considered.
According to her, under the MSME’s the minimum applicants can apply for is $8100 and maximum $675,000.
“Consideration may be given to larger amounts on a case-by-case basis,” she indicated.
In fact, Johnson noted that a business can apply for funds under the facility more than once, “however we would prefer the facility allowed to run for at least 6 months, so that we can monitor the facility before we give new fund.”
“For 6 months the client pays nothing,” she noted.
Meanwhile, as it relates to the Kalinago Development Fund to qualify the applicant must be of Kalinago ancestry and the project or infrastructure being developed must be geographical in the Kalinago Territory. The business must register the Dominica Social Security and Inland Revenue and the owners of the business must be citizens of Dominica.
She explained that this facility is distinct from anything that you will find from commercial banking space or at a Credit Union.
“First of all the terms are excellent,” Johnson stated. “You have 2% compared to as much as 15% which you will attract at the commercial banks or at the credit union.”
She continued, “They are very flexible security options, there is absolutely no tangible security required.”
She said what the Kalinago’s need to present is a secured payment arrangement.
This includes a standing order on an existing account, salary deduction or assignment of contract sales.
“There is also a grace period of 6 months,” Johnson stated.
They will be required to show a proof of Identification, proof of address , letter from the Kalinago Village Council verifying Kalinago ancestry , letter from the Kalinago village council certifying land ownership.
Applicants are advised to call 255-9400, 448-2853, 255-9444, 255-9467 or E-mail [email protected]
Dominicans should do just like Sam Raphaiel; Crazy T; Simeon Albert take the money and don’t pay it back, it’s the pattern set by this administration giving their DLP supporters free monies from Dominica’s coffers, “mutiny on the Bounty”.