Susan Gordon, Staff Reporter
MOSS-SOLOMON
ONLY THREE Jamaican companies have so far got loans from the US$16 million revolving loan scheme launched by the CARICOM Trade Support Programme (CTS) of Trinidad and Tobago in 2004.
The CTS programme is a revolving loan scheme administered by the Trinidadian Government strictly for CARICOM companies who seek financing for technical research or developments for their businesses. It was set up based on the recommendations of the Caribbean Association of Industry and Commerce headed by James Moss-Solomon.
The fund has paid out more than US$750,000 to seven companies, but only three of these are Jamaican, said CTS programme co-ordinator Neville Blake. Grace Kennedy and Company Limited is listed among the three.
Asked to comment on the progress of the programme, Mr. Moss-Solomon said, "More Jamaican businesses should make use of the opportunity of the CTS funds."
Outside of Jamaica, the other four successful applications came from companies located in Barbados, Antigua, St. Kitts and St. Vincent. Out of over 400 loan applications received, 15 have been processed, Mr. Blake said.
BUREAUCRACY
He said the small number of loans disbursement so far is partially due to the bureaucracy surrounding the CTS funding. The loans are administered from Port of Spain in Trinidad where RBTT Bank manages the funds.
Trinidadian companies cannot gain access to the CTS fund but other CARICOM-based companies may borrow a minimum of US$10,000 to a maximum of US$100,000 of the funds and are given up to thirty months to pay back the loan in U.S. dollars, interest free.
Mr. Blake said a major problem emerging is that most applicants are seeking venture capital funds, a feature outside the scope of the programme.
For those companies which want funding for expansion or capital ventures, Mr. Blake said the CTS has been referring the applications to a U.S.-based commercial bank with which it collaborates.
Mr. Blake says CTS has no quotas on the number of companies which can apply but will take the applications on a case by case basis.
He said the concept behind the programme was that, "Grant funding has not taken us very far over the years. You have to look and see how best to run your operations."
