By McPherse Thompson, Staff reporter
Managing director of the Bank of Nova Scotia and chairman of the Micro- Enterprise Financing Limited (MEFL), William Clarke, presents a cheque for the first MEFL loan to (l-r) cosmetologist Damaris Williams, grocer Carmen Wallace and vendor Paulette Bennett. In the background is Debra Williams MEFL executive director. - Contributed
AN ENTERPRISE established earlier this year to provide loans to small businesses with little or no collateral in targeted renewal zones in Kingston and St. Andrew, has now started to disburse funds.
Micro Enterprise Financing Limited (MEFL) last Friday provided its first loan to a group called "Selfworth", consisting of four women who operate small businesses in downtown Kingston.
According to a news release, BNS' managing director, William Clarke, who is also chairman of MEFL, presented a cheque for $24,000 to the group, comprising Paulette Bennett, a shop operator and fish vendor; Carmen Wallace, a grocery shop operator; Damaris Williams, cosmetologist, and Marlene Bennett, a cook shop operator.
Loans from MEFL can be used as working capital in the day to day operation of a business, for purchasing raw material, to acquire inventory for retailers and wholesalers, financing the expansion of an existing business and for product diversification.
Mr. Clarke said the programme was intended to help people "carve out a better stake in life." He said that "in the long run communities are going to benefit, as we would like to see these micro enterprises grow to become large commercial businesses." In urging the community groups to think seriously about productive activities that were sustainable, Mr. Clarke also urged loan beneficiaries to repay the money on a timely basis so that others could benefit.
And Debra Williams, executive director of MEFL, said loans would shortly be disbursed to an additional five solidarity groups from zone three, which include the areas of Olympic Gardens, West and Central downtown Kingston. Those expected to benefit have been trained by the Kingston Restoration Company (KRC) in skills such as business development, finance and personal development.
MEFL was officially launched by Prime Minister P. J. Patterson in May, this year, and will be financed with a grant of Cdn$3 million (J$88.5 million) from the Canadian International Development Agency (CIDA), and a loan of Cdn$2 million (J$59 million) from Scotiabank Jamaica. The money will be loaned to micro entrepreneurs in targeted renewal zones of Kingston and St. Andrew.
Under the programme, micro-financing services will be made available to low-income, urban, micro-entrepreneurs with little or no collateral and will possibly be extended to similar communities across the island.
