EXIM Bank Tells Hurricane-Hit SMEs to Use Recovery Loans and Financing Support

The National Export-Import Bank of Jamaica (EXIM Bank) is calling on operators impacted by Hurricane Melissa, with special emphasis on small and medium-sized enterprises (SMEs), to access the institution’s financing facilities.

Hopeton Nicholson, Manager of Loan Origination and Business Development, said EXIM has continued its regular lending programme to help clients recover after the storm.

“Our mandate is to drive economic growth as well as to promote job creation. In doing so, EXIM continues to fund companies to meet that specific mandate,” he said while speaking at the recent Small Business Association of Jamaica (SBAJ) ‘Export for Success’ membership meeting held at EXIM’s Hope Road office in Kingston.

Nicholson explained that after the hurricane, the bank introduced a six-month moratorium running from November to April to give firms breathing room to restore operations, retool and rebuild.

He said the measure concentrated on SMEs operating in productive industries.

“Full moratorium on principal and interest was offered, so for six months, they (businesses) were not making payments. Payments would have recommenced at the end of April,” Mr. Nicholson indicated.

He added that EXIM also provided support for clients needing capital spending to recover, using an asset-based lending approach.

“What we also did for customers, who needed some level of support to recover in terms of capital expenditure is asset-based lending, where we focused on collateral rather than financial/credit health, and making the process seamless to give those clients access to funding to recover from the hurricane,” he added.

EXIM Bank said its standard loan portfolio remains geared to export development, trade finance and SME expansion, and typically carries lower collateral requirements than what is common at commercial banks.

These facilities include short-term working capital financing for up to 180 days, medium-term lending to support SME growth, and foreign-currency credit lines for importing raw materials.

One option is the E-Commerce Funder, aimed at building, upgrading or expanding e-commerce systems. That product offers loans from $1 million to $5 million at a fixed interest rate of five per cent over a five-year period.

The bank also offers EXIM Express, a short-term receivables financing product that lets clients unlock funds tied up in invoices. It provides up to 75 per cent of receivables value for as long as 90 days.

Under EXIM Express, loan amounts range from $2 million to $25 million, processing takes seven days, and rates are described as competitive. The facility does not require collateral or a financial statement.

For SMEs seeking to cut electricity bills and strengthen operational efficiency and cash flow, EXIM provides a Solar Energy Loan.

This loan can finance up to 85 per cent, with limits from $5 million to $50 million, at a fixed 7.50 per cent interest rate and a maximum tenure of seven years. Solar equipment can be used as collateral up to 85 per cent of total installation costs.

Exporters can also access the Modernisation Fund, Trade Credit Insurance (TCI), and the Insurance Policy Discounting Facility.

The Modernisation Fund supports the acquisition of capital for retooling, refurbishing and upgrading equipment and facilities, with financing between $5 million and $90 million for terms of up to five years.

The Insurance Policy Discounting Facility gives collateral support that can help businesses secure working capital, while TCI is structured to protect exporters from non-payment risk by covering commercial and political exposures on gross invoice values.

“The insurance protection is for receivables. Whatever the gross invoices sent are to your buyer, those receivables are [insured]. It covers both commercial and political coverage,” Mr. Nicholson pointed out.