More business owners seek CIDB cheap loans

(CNS): The low interest loan programme offered by the Department of Commerce and Investment through the Cayman Islands Development Bank has seen a slight increase in applications recently, according to Premier Alden McLaughlin, who said that 65 applications with a value of CI$2.2 million have been made from the $5 million available. The cheap loan initiative is part of a package to help small businesses navigate their way through the new COVID-19 economy.

Only five loans have been approved so far and another five are currently being assessed. However, at least five hundred people have applied for the grant that government is offering to small and micro businesses to re-purpose themselves in the post COVID environment, which is part of the same relief package.

Speaking at the COVID-19 briefing on Friday, McLaughlin said the government had implemented a technical assistance programme to help applicants to present their financials to the bank. He said qualified accountants have been employed to help prepare these documents at no cost to the small business owners. 

“This programme has so far worked, with 32 loan applicants, helping them to prepare their financial statements and business plans,” he said.

Last month the premier said that uptake had been low on the loans, which offer successful applicants a 1% interest rate on up to $50,000 over five years, with no payments for the first six months. But only businesses that are 100% Cayman-owned can apply because of the CIDB law, which prevents Caymanian owners with a foreign partner from applying.

The premier noted that the loan application was the most “problematic part of the whole exercise”, which has led to the introduction of a free accounting service to help applicants access the money.

The DCI is also offering free webinar training and business advisors through its Business Development Centre, established to support small businesses. This will be conducting small group training based on an assessed need, “with the primary focus on helping small businesses to pivot in the current business environment”, the premier said.

Entrepreneurs, micro and small business owners interested in support, should contact the Cayman Islands Business Development Centre at 244-8009 or by email at cicbd@gov.ky.