More business owners are looking for cheap CIDB loans
(CNS): The low-interest loan program offered by the Department of Trade and Investment through the Cayman Islands Development Bank has seen a slight increase in the number of applications recently, according to the premier Alden McLaughlin, who said 65 requests worth C $ 2.2 million were made from the $ 5 million available. The cheap loan initiative is part of a package to help small businesses navigate their way into the new COVID-19 economy.
Only five loans have been approved to date and five more are currently under appraisal. However, at least five hundred people have applied for the grant the government is offering to small and micro businesses to reorient themselves in the post COVID environment, which is part of the same relief program.
Speaking at the COVID-19 briefing on Friday, McLaughlin said the government has put in place a technical assistance program to help applicants present their financial statements to the bank. He said qualified accountants were employed to help prepare these documents at no cost to small business owners.
“This program has worked so far, with 32 loan applicants helping them prepare their financial statements and business plans,” he said.
Last month the prime minister said this use had been low on loans, which offer successful applicants a 1% interest rate on up to $ 50,000 over five years, with no payment for the first six months. But only 100% Cayman-owned businesses can apply due to CIDB law, which prevents Caymanian owners with a foreign partner from applying.
The prime minister noted that applying for the loan was the “most problematic part of the whole fiscal year,” which led to the introduction of a free accounting service to help applicants access money.
DCI also offers free webinar training and business advisors through its Business Development Center, created to support small businesses. It will be a small group training based on an assessed need, “with the main objective of helping small businesses to pivot in the current business environment”, said the Prime Minister.
Entrepreneurs, micro and small business owners interested in support should contact the Cayman Islands Business Development Center at 244-8009 or by email to [email protected].