2019/20 Budget Communication Final Budget Communication | Page 25

about citizen empowerment, particularly as it relates to supporting entrepreneurs and facilitating
an expansion of jobs and economic growth.
To date, the Bahamas Development Bank, the Bahamas Entrepreneurial Venture Fund,
and two commercial banks have joined in as funding partners in this initiative. While I am pleased
about that, I expect to see all commercial banks committing to do much more to provide tangible
support for microfinance and small businesses in The Bahamas — either through the government’s
loan guarantee initiative — or through their own programmes. They must realize, as I do, that to
build their marketplace of large commercial clients, they have to plant the seeds that will allow
today’s entrepreneur and small business to become the strong vibrant multi-million dollar business
client that they all seek. I put the banks on notice that I will be meeting with them collectively to
discuss this issue and to consider the options for requiring them at a minimum to publish and
publicize their ongoing performance and portfolio makeup in respect to microfinance in the country
and loans and facilities extended to Bahamian small businesses.
Going into the new budget year, the Government is expanding its allocation to the
small business sector from $5 million to $8.5 million, inclusive of capital and recurrent outlays.
These funds will be used to both fund operations and grants, as well as to underwrite loan
guarantees, and provide for equity financing. This $8.5 million will be leveraged to provide as
much as $12 million in financing for Bahamian MSMEs during the upcoming fiscal year.
Further, the Government is considering a $25 million Credit Enhancement Program with
the IDB to continue to expand financing of MSMEs. The project is intended to boost economic
activity by providing financing for small businesses as well as improving their business skills.
These objectives are largely in line with the functions of the SBDC and, as such, the SBDC will
stand as the executing agency for the project, if approved.
The project would include two major components. The first component would include a
Credit Enhancement Facility (CEF) which will be administered by the SBDC to facilitate the
financing of MSMEs. The second component would include the support and strengthening of the
SBDC’s program for advisory and technical assistance, and the SBDC itself.
Mr. Speaker,
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