JN Small Business Loans Limited (JNSBL), a subsidiary of the Jamaica National Building Society group, has announced a new record in loans disbursed - 31,000 for the year ending March 31, 2007 - a third more than the year prior.

Total disbursements topped $1.1 billion, representing a 44 per cent climb on 2006, funds that JN Small Business said financed businesses that generated jobs for 4,000 persons.

"We exceeded our projections for the past fiscal year by 21 per cent," said General Manager, Frank Whylie in a company release.

Contained loan arrears

But Whylie also boasts that JN Small Business has contained loan arrears to 5.1 per cent and below in the risky micro-financing sector. On the back of that performance, the financing company has added a new product to its range, BizBoost, implemented in April.

BizBoost is JN Small Business' largest offering yet, providing financing of up to $3 million, repayable over 10 years at 10 per cent per annum.

That10 per cent is a fifth the price at which JN Small Business quotes its other loans, which are quoted at 1 per cent per week, but equate to an annualised 52 per cent. Applicants for BizBoost will pay a 2.0 per cent processing fee, and must either have "unencumbered real estate", a motor vehicles, business equipment or a third-party guarantee as security for the loan.

Compared, BizStart, which was introduced in 2005, offers mirco-entrepreneurs entering business for the first time - essentially persons without a track record in business - access to borrowings of $5,000 to $50,000 for the first loan for a period of 10 to 30 weeks.

Repeat loans may then be accessed in increasing amounts up to a maximum of $90,000.

BizGrow loans range from $5,000 to $70,000 for the first loan, while repeat loans are capped at $300,000, with pay back in 10 to 50 weeks.

Whyle said BizBoost was developed "in response to market demand."

JNSBL now operates from 30 locations island-wide, with its newest office opened last year in Albert Town, Trelawny.

According to Thelma Yong, credit and risk assessment manager, the company will also be boosting staff to handle the demand for its services.

The financing company said too that its loans were linked to the creation of 17,000 jobs over six years.

It has partnered with the state-sponsored Jamaica Business Development Centre on business development training for its clients.

business@gleanerjm.com