Earl Jarrett, managing director of Jamaica National Building Society, and Dr. Joan Neil, OAS Representative to Jamaica, sign an agreement for a $5 million revolving loan fund for inner-city residents, to be managed by JN Small Business Loans Limited (JNSBL), at the offices of the Gleaner, North Street, Kingston, on Monday. Overseeing the signing is JNSBL manager, Frank Whylie. - Winston Sill/Freelance Photographer

JN Small Business Loans Limited yesterday signed a memorandum of understanding with the Capoeira for Empower-ment and Peace Programme (CEPP) for small businesses within the inner city to access loans from a $5 million pool.

The revolving fund, seeded by CEPP, will lend a maximum $30,000 per applicant at one per cent per week, or 52 per cent annualised, repayable within 30 weeks.

Business operators can reapply if their payment record is in good standing.

The local CEPP - an OAS-sponsored conflict resolution programme which utilises Capoeira, a Brazilian martial art form that stresses peaceful inter-personal interactions - targets young persons, especially males between the ages of 15 and 29, and encourages them to learn mediation, self-discipline and self-control.

Entrepreneurship module

The programme includes an entrepreneurship module in which participants are taught the principles of operating small businesses.

The loan fund will offer financing for start-up as well as continuing business operations for micro businesses, including agriculture, and may be used for purchasing stock, fixed assets, planting material, and bird feed.

Frank Whylie, general manager of JN Small Business Loans, said the programme would fit into a current facility already on offer for start-up businesses.

"We expect it will give us the opportunity to alert inner-city communities to its existence and, importantly, to ensure that they know that it is a revolving facility," said Whylie.

Target communities include New Haven, Mountain View Avenue, Seaview Gardens, Mona Commons, and Papine, all located in the capital.

CEPP is operated by the Young Americas Business Trust, an Agency of the Organisation of American States (OAS).

Soon in rural areas

The OAS representative to Jamaica, Dr. Joan Neil, said the programme would be replicated in rural areas.

Neil and Earl Jarrett, general manger of Jamaica National Building Society, the parent of JN Small Business, were signatories to the MOU.

"Poverty is more serious in rural parts of the country compared to urban areas," said Neil.

"We will be partnering with the National Housing Trust to begin the CEPP programme in the sugar communities in Clarendon," she noted.

- business@gleanerjm.com