SMEs to get funding aid

A proposal for the establishment of a venture-capital programme, a mechanism through which small and medium-size companies can more readily access funding, was yesterday tabled in Gordon House by Prime Minister Bruce Golding.

The Programme is being developed against the background that many small and medium-size enterprises (SMEs) experience difficulty in obtaining financing from formal financial institutions such as commercial banks.

But while the Jamaica Venture Capital Programme is recognised as one of the solutions to make a meaningful impact on the financing challenge faced by SMEs, it is not all encompassing.

The funds will be targeted at viable businesses which require capital, capacity-building and improved governance and which are committed to list on the Junior Stock Exchange within two to four years.

To access the facility, companies must have an asset base of between $10 million and $50 million and annual turnover of $40 million to $300 million.

Special target groups include companies in biotechnology, energy conservation, agro-processing and cultural industries.

A pilot project of the SME venture fund is proposed to be established within the next year. Management and operational responsibility of the fund will be vested in the Development Bank of Jamaica.