Access to Finance for MSMEs

closed

The development objective of Access to Finance for Micro, Small and Medium Enterprises Project for Jamaica is to improve access to finance for micro, small, and medium enterprises (MSMEs). This project has four components as follows: 1) The first component, Enhancing the Credit Enhancement Facility (CEF) for guarantees to MSME loans, aims at improving the operational features of the CEF. 2) The second component, Supporting the establishment of an SME Fund for risk capital financing to SMEs, aims to contribute capital to public-private SME Fund of 10 years extendable to 12 or 15 years, which will provide in risk capital to established SMEs that have high growth potential and operations in Jamaica, but have not been deemed investment worthy by private equity funds. 3) The third component, Improving the enabling environment for access to finance and business development services for MSMEs, aims to support improving the enabling environment for access to finance for MSMEs, including the development of financial instruments, such as leasing and factoring, and business development services (BDS) for MSMEs to improve their bankability. It has the following sub-components: (i) Enabling environment for access to finance for MSMEs, including the development of financial instruments; and (ii) Business development services for MSMEs to improve their bankability. 4) The fourth component, Project management, aims to support a Project Implementation Unit (PIU) responsible for the coordination, implementation, and supervision of the project.