$9M in grants and $5M in loans for small business
(CNS): Commerce Minister Joey Hew has announced a low interest loan programme for 100% Caymanian-owned micro and small businesses and a grants initiative for local businesses that could survive the immediate post COVID-19 economy. At Monday’s press briefing Hew outlined the first measures in a stimulus package that government plans to implement once the curfew restrictions are relaxed, but said other measures were in the works for the wider commercial sector.
The minister said the priority was still the health crisis and ensuring that we curtail the spread of the virus or flatten the curve of that spread. But he said the government was preparing for a post COVID-19 local economy.
The Ministry of Commerce is offering free technical support, such as accounting and training, to business owners. However, the two major elements of this first package of support are loans and grants.
The $5 million loan programme, which will be made through the Cayman Islands Development Bank, is for Caymanian-owned micro and small businesses. The loans will be rated at 1% interest over five years, with no payments for the first six months. Loans will be a maximum of $20,000 for micro businesses and $50,000 for small businesses. All applicants will need to meet specific criteria.
The other major area of financial support will come from grants, with $9 million being set aside for 3,000 vulnerable businesses. This money will be given to existing micro and small businesses in the form of a $1,000 monthly payment for three months to give them working capital.
These business must have existed for 12 months; they must also show they have a domestic market and demonstrate that they can survive the post-virus local economy. The grants will also be available to tourism businesses that can show that they can transition into a viable domestic business.
“The loan programme will be for 100% Caymanian-owned companies,” Hew said. “The grants programme is for small and micro business… but the key issue is, if you were tourism-related business that you have the ability to convert your business into a business that can survive under the new local economy. “
Government cannot support a former tourism business that cannot transition because it “makes no sense”, the minster said, pointing out that it will be a very long way down the line before tourism returns. However, the offer of training and the technical provision from this first package of measures will also try to help those formerly in tourism to see if there is some way to adapt each business model.
Hew said his ministry was looking at different incentives and other stimulus packages that will be available across board to help businesses come back. He said the ministry would continue talking to the local business community through the Small Business Association and the Chamber of Commerce about what can work.
The premier has said that government supports the idea of a pension holiday and possibly even withdrawals from funds, but that this will require legislative change.
How the parliament can meet remains in question. In addition to the social distancing measures that the premier is concerned about, the leader has not yet addressed the sticky issue of there being no speaker of the Legislative Assembly, given that McKeeva Bush has taken a leave of absence and remains the subject of a potential prosecution, and the deputy speaker resigned.
Details of these programmes will be circulated to the business community but also be posted on the CIG coronavirus website and from the ministry’s Centre for Business Development via email at cibd@gov.ky
See press briefing on CIGTV below, set to start with Minister Hew’s prepared remarks.
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Category: Business, Economy, Politics, Small Business
Alden need to make caymanians also access there government pension even if it’s not all but at least a 75% or 50% of there government should be able to be accessible because there are a lot of us whom have kids and bill to pay
And therefore are just accumulating up on us
But they dont care rather we pay our Bill’s or if people houses get foreclosure
Not all caymanian have private pension there are hundreds that have government pension and should be able to withdraw from it as well
Thousands, you mean surely?
Does anyone support this plan? Were any of the the private sector groups asked their opinions? Was this just something made up by the PPM Caucus.
This is wasting money and time, both of which we don’t have. We need to get money into the people’s hands and soon. Waiting for CIG to set up this program and all the issues that will ensue is a total waste of time and effort..
Well the government can now add a few more personnel to the already bloated and largest voting block, the Civil Service! To run this farcical scheme.
I know Alden is getting tired and his nerves are on edge but I was disappointed in his response to CNS today with regards to the this so called “stimulus.”
I really don’t think he understands the gravity of this situation. People have been out of work for some time now both expats and Caymanians. Our futures are bleak and the response from Alden as to what he and the government can do in the short term rather than this medium to long term stimulus plan that Joey is advancing..For me it wasn’t as much as his response but the defensive way in which he took Wendy’s question which I thought was a good one and is evident with this article and from many other persons I have spoken to..
I believe what Alden needs to do now is to swallow his pride and reach out to the UK Government for assistance before all of the other Overseas Territories start sucking them dry. We are proud Caymanians and have helped not only the UK but our fellow territories but I don’t think we can do this one alone…Getting defensive and telling us in essence to go “suck sand” as we say here in Cayman is not a good response…
If this isn’t given any more insightful thought, people are going to start getting hungry and crime will start to run rampant.. The government must engage the private sector and the UK Government for solutions and Joey needs to scrap this half-ass, ill-conceived, fool fool plan..
What really needs to be understood is at the end of the day, in relation to businesses seeking support, if they are not going to be viable they need to close. Government can support the former employees via the NAU, but why waste money on the business’s overheads to keep them afloat just to make payroll but do little else? If the business can develop a new plan to provide services in the new economic context and local reality over the next 3-6 months, they can receive support by the offerings available.
This is not a free-for-all whereby money is going to be injected into the economy without due consideration of where it will do the most good. At the moment, that does not include supporting businesses that are going to fail in the short term.
I agree. I think there are already people who are hungry. I know there were people struggling and suffering before this. Even if a small business folds, the people who owned the business will now need help. Most of us do not have thousands of $ stashed away. We struggle with the cost of living in Cayman in the best of times and Alden etc. are just not getting it.
Get your suitcases ready because boots at the airport (Caymanian boots!) going to be on them flights out with their families. The 20s somethings schooled in UK going and ain’t coming back. The 40 yo businessmen they ready to set up shop stateside.
PPM you better flood this place with money $500-750 million
This is like Ivan with no reinsurance monies coming in. Like 2008/2009 except there are no buyers at any price…there is no market…
Good thing you have surplus now go to the banks and tell them that anyone who had a business license prior to 1 April 2020has a guaranteed loan of up to 50,000.00 at 1 percent. Increased by 30k per employee. Your Govt. Agency should not be involved in administration of these loans… Look. At the US.. Do you. See the import. Export. Bank deal with this… Not a time for your political bs
Grant should be 25k
Checks of 3500 sent to each registered voter
2000 each resident status holder or PR and spouse.
750 each work permit holder.
That is a proper start
That’s what you call a failed stimulus…did Bermuda just drop a 200 million dollar package. I guess CIG are getting prepared to bail out a foreign owned bank or buy all the homes off the liquidator cause that’s where we going. 2 weeks in CIMA was already encouraging banks in breach of their capital ratios to come forward. They closed Western Union and slowing things down at the banks… Sounds like blood on the streets
Isn’t the idea is to give the loans to family and friends for more than required just like they did years ago and most of the friends that received lots and lots of monies did not even use the money for business more for pleasure. When we went to see if they would assist us in a small business of course the person that’s was suppose to assist and help us was deeply involved with those government official who was to assist before we could sit down and discuss the matter she said if we had come to borrow monies its all gone. So we do not have any monies to help you.
It is very apparent that this was not very well thought out or that the input of the private sector was not included.
Joey, as well intentioned as you may be this plan is high on hype and short on substance and will do little to relieve what is happening tin the economy right now. Cayman needs a true stimulus not a bunch of complicated theoretical plan geared at helping a chosen few.
I really think we should have someone like Roy McTaggart putting this together. Joey’s business experience as well as political leadership is limited at best and he needs help.
Another massive failure by Joey Hew.
We are drowning and he is pretending to help. Lots of ppm supporters and constituents in GT North will be preferred recipients. SMH
How about using some of that money to come up with a long term strategy that will actually bring money back to the island. The idea that the island is actually going to be able to survive on the financial services sector alone is a farce. We don’t produce any of our own goods, especially the diesel fuel that runs our generators. All of those goods have to be purchased with US$, GBP or other globally accepted currency No foreign suppliers accept our monopoly currency also known as the CI$ dollar.
That means worldly accepted currency has to come into the island in order for the island to survive. As more and more businesses shut down and more people lose their jobs the more money government will hemorrhage trying to support the unemployed and their support will get cut slimmer and slimmer. Then we’ll see serious socially unrest. Crime will go through the roof, domestic violence will skyrocket etc. At that point the government will start to come up with great ideas like property tax on foreign owned property and ever increasing fees on the only sector still bringing in money, the financial sector. Which at that point with island spiraling down they will relocate to other jurisdictions which will be happy to have them.
We need to come up with a strategy to get people back here with their money as soon as possible.
Mass testing for the entire island. Identify positive cases and quarantine them to get the island clean and opened up.
Several biotech companies around the world are developing rapid self tests. As soon as they are available we should be looking at marketing Cayman as the safe destination where you can go out to eat, go to the beach, etc. Test people before they get on the plane and again when they land. There are plenty of wealthy people around the world who would gladly pay to come somewhere safe to ride this out.
yep..
I won’t be getting tested.
#metoo
Just like the work permit holders who no longer have a job get food vouchers your own people need the same. Glad you are helping wp holders but many many people were struggling financially before this outbreak even with a job or small business. Those who have plenty here are completely clueless to what ordinary lower and (former) middle income people are going through. Help your own people as well. Get your heads out of the sand. People need help now. Not in 3 months or even 1 week. NOW!
You need to read more, the NAU is processing 184 applications from Caymanians this week. The helpline for WP holders has just been set up, and as far as I know nothing yet approved. But don’t let fact get in the way of a good anti furrener rant, right? However I see the Wharf and others have set up a programme to help WP holders who lost their job to eat. So, dear Sir/Madame try using facts instead of rabid xenophobic fake news, and perhaps get the richer members of Cayman society to step up to assist Caymanians too, or are foreigners supposed to do that too?
Your rant to me is totally unnecessary. If you read my post properly you would have seen that I am happy wp holders are being helped but I know there are a lot of Caymanians suffering who need help today. I think it is you who might be anti Caymanian. Fyi I am not a Caymanian either. NAU was struggling to get help to people way before this outbreak and I am afraid it will take even longer for needy people to get help. Good luck with your lovely attitude
How about instead of $200m port, we use some of that money and legal fee savings on significant austerity measures? Aldart you’ve been giving away our futures for 7 years now…time to give something back.
It seems not all local businesses contribute to the cayman economy. Where is the plan? Who come up with this, such discrimination.
I would rather close my doors than rely on these criminals.
My business is more of a hobby which just about breaks even. Too bad for my 13 Caymanian employees I guess.
A 13 employee hobby? Or a rich kid with nothing to do who was happy to fleece while the going was good but now wants to throw it back… try that c[back where you came from – even if it is from under a rock…
Thanks but no thanks! This is a setup for lot small companys/owners to lose lot more than they went in with at the start. This is a a big mistake and if you listen careful they only granting the 1%intrest for the 1st year after that it would be the lender who make the increase. Guess what that might be?? Any loan to already struggling small Bizz is going to make it worse as the economy it self by all accounts is not going to rebound for atleast 2/3 years. What we need is a offer to truely help no strings attached for the small and micro Bizz persons. Sorry say but if in 3 weeks your Bizz is failing and at point ur in debt by more than 10k and with no real idea when we get to start back in sight soon the loan will only give you false hope and more stress and money issues. Would be wiser to close it down now. And when the dust is clear pick your self up and start over but to try and start over at -10k+ and get a loan say of 20k to pay off said debt of 10k+ with no real local economy to keep the Bizz moving don’t make sense, it a knock on effect on local economy and with amount of person out work who’s going to have money to spend at the small/micro Bizz? Just thoughts, some time we need to just look past tomorrow but look to what next week and next month brings or in this case may not bring.
#staystrongcayman
joey and ppm…re-arranging deck chairs on the titanic….
#JOEYWHO
Disappointing, this is like through a lifeline to someone drowning and adding a dead weight to it…
Expected better but not surprised..same old not thinking outside the box..Speak to the private sector and ask them what they need first Joey?
Joey, please don’t waste the country’s funds, please? This is like putting lipstick on a pig.
I totally expected something exciting when I saw Joey up there today but almost nodded off during the the speech..
This sounds like just another NAU in the making..
All i can say, I’m so disappointed. Joey really needs to ask for some help and guidance from the private sector. this is hogwash and window dressing. By the time they get all this set up and the red tape to make it work we will all be dead..
This is like trying to feed 65, 000 babies from one mother and only one breast is working…well, somewhat..
Hew is clueless and all the pretty talk does not hide the lack of substance to this program and his leadership qualities as a minister. He drops the ball again
He does have better speechwriters than Jon Jon, I’ll give him that.
Bs… Had to be in business for over a year. I opened my business 3 months ago spent over 50k on a mirco business and now they saying got to be in business for over a year… What crap and I had plans to hire just before this. That’s down the drain and how am I to support other local businesses if they don’t support us
If you went into a new business without a plan for tough times and are willing to throw that up so quickly, you are the type of business they are trying to exclude!!! They want dedicated, hard working, tireless companies willing to rough it out with a reasonable chance of survival and hope for the future. If you’re dead after 4 weeks, that was probably in the cards and you are one of the expected 50% of new biz start up failures… sorry…
Bet you have 13 employees too… all Caymanian… your rants are getting old…
I did, now I have 12…Bobo who got let go can thank Jokey Hew for that.
So wait, companies that are 60%+ Caymanian and/or less than 12 months old don’t qualify for assistance. Is that what he meant by “100% Caymanian” or did he mean only ordinary resident companies and sole traders? 😕 Confused.
They need to be a lot clearer, as there are discrimination laws.
I would have expected a package of at least $100m by now. This is a band aid on a gun-shot wound. You can use that as a title for your article if you want CNS.
Since most guns are bb’s used for iguanas, perhaps a bandaid is supposed to work…
This is a disaster waiting to happen
This is a terrible response. Why do only 100% caymanian owned businesses get assistance? I am Caymanian, pay my fees just as much as they do and my business is 90% caymanian owned and 10% foreign owned. That foreign worker does more work than the 90% ownership group combined.
Apparently not listening 100% either… majority Caymanian owned, I believe… that would be 60%+
Where they find Joey? He reach back from Rum Point finally?
All applications should be sent to lodge@nepotism.ky
window dressing…..cig is whistling as walks past the graveyard….
And let the nepotism, cronyism, clannism, and favoritism begin!
and buy some votes with whatever is left over
Fix the damn dump Joey!
I have 13 employees and for that reason only I’m excluded.
Fire one. Problem solved.
Fire one of them and you get the $$$ – this is what makes it silly
Oh, there you are again, my 13 employee hobby business… sorry. Daddy’s checkbook isn’t here this time…
Great start, now multiply by 100.
Hate to be Debbie Downer but Joey, you completely lost me today..This was so complicated at times I was glad that you had your script because even you seemed lost…This seems like a lot of promises, bureaucracy and red tape to jump through to get a few dollars maybe 6 months from now that may or may not materialize.
Anything for the people who need jobs or a little money in their pockets to buy groceries now?
Joey been lost from time.
Joey Who?
So annoyed. Why did they even bother. This is no help to anyone in small business. What are they thinking. Waste of time and money. Disgusting, they should a be ashamed for this sham of a plan.
I trust that the Commerce Ministry and the appropriate Departments under that ministry will carefully evaluate ALL applications for assistance. There are dozens of “businesses” (especially within the transport sector) which do not have any employees other than the owner/principal, who are retirees already collecting a pension.
Unless business have employees other than the principal, or unless that principal clearly has NO other source of income, they should not be eligible.
Careful vetting and oversight is needed throughout the entire process!
This is nice in theory, but it really helps few. Business will not qualify given all of the restrictions. Looks like nothing more than a way to do as little as possible with the biggest pr boost. I am So disappointed, but not surprised.