The Access Accelerator Small Business Development Centre (Access Accelerator) and Fidelity Bank Ltd (Fidelity) have partnered to facilitate $5 million in loans as a part of the Access Accelerator's MSME Loan Guarantee Programme.
In total, the programme has $16 million allocated between three partner financial institutions – $1 million by the Bahamas Entrepreneurial Venture Fund, $5 million by Fidelity and a third partner soon to be announced. More financial institutions are expected to join to assist in facilitating the $22 million in loans for micro, small and medium-sized enterprises funded by the Inter-American Development Bank (IDB).
Nicholas Higgs, Access Accelerator Deputy Director and Chief of Operations, explained how the loan guarantee would work.
Higgs said, "The guarantee is for our partnering financial institutions. It lessens their risk of facilitating loans to small businesses because the institutions know that regardless, through the funding provided by the IDB, they will be covered for 75% to 90% of the loans given."
He continued, "Where small businesses win in this situation is that the environment for funding is more appealing to financial institutions. This means more opportunities for funding and a higher chance for approvals as more funding agencies take the step to help support the small business sector by being a part of this programme."
The initiative is expected to strengthen the development of the private sector and its competitiveness countrywide said IDB Country Representative Daniela Carrera-Marquis.
“The Inter-American Development Bank remains committed to supporting the country’s development goals and the financial sustainability of MSMEs in The Bahamas is a top priority, as we have outlined in our IDB Vision 2025 strategy,” Carrera-Marquis said. “This initiative assists MSMEs in securing short and long-term financial opportunities that will, in turn, help the country’s economic recovery coming out of this pandemic.
“Therefore, it is critical that we continue to support smaller businesses as an engine of recovery that acts as a primary source of employment for the nation and major suppliers of goods and services to the general population.”
Fidelity Chief Executive Officer Gowon Bowe described the partnership between Fidelity and the Access Accelerator as an avenue to further support national development and further educate business owners, highlighting the significance of private sector partnerships to aid the small business sector.
“The MSME Guaranteed Loan Programme provided an opportunity for us to partner with the Access Accelerator, which shares the common vision for national development, specifically through MSMEs. Businesses in the programme are not simply provided access to funds but are rather mentored through the business life cycle, with financing being but one aspect, albeit an integral aspect. By educating businesses on the best practices in expanding their access to their customers’ wallets; utilising digital payment solutions; and building equity and liquidity, the Bank and the Access Accelerator can nurture the highest possible probability of success for the impacted MSMEs.”
Bowe continued, "Through appropriate planning and execution, with the support of the Access Accelerator, Fidelity and other financial institutions that follow suit, those MSMEs accessing financing made available through the programme have an opportunity to build their own track record and financial credibility, thereby facilitating further access to capital markets and more advanced funding opportunities. With the financial support that the programme enables MSMEs in accessing financing, along with the mentorship that accompanies such financial support, there is a greater probability of successes by MSMEs and in turn national development; it is hoped that the successes of MSMEs in the programme will beget further successes through new MSMEs entering the marketplace and enhancing the competitiveness of The Bahamas.
"This is why partnerships such as the one created between the Access Accelerator and Fidelity are integral in establishing the merits of public-private-partnerships (PPPs), and demystifying the view that in The Bahamas such only exist in abstract communications. Fidelity confirms its commitment to the programme, and to similar partnerships and initiatives with the Access Accelerator, where the experience and expertise of this bank can support national development. Additionally, we look forward to mentoring and better serving our existing participants in the programme, which we expect in turn to support the development of future MSMEs."
The Access Accelerator sees Fidelity's participation in the programme as a tremendous vote of confidence in small businesses with the financial institution being the first Bahamian commercial bank to sign on to the organization’s guarantee programme.
The Access Accelerator is the product of a tripartite arrangement between the Government, through the Ministry of Finance, University of The Bahamas (UB) and the Bahamas Chamber of Commerce and Employers Confederation (BCCEC). The Centre works to guide the development, funding, growth, and evolution of Micro, Small and Medium-sized Enterprises (“MSMEs”) in The Bahamas. Visit us at www.accessaccelerator.org.
The Access Accelerator Small Business Development Centre (Access Accelerator) has partnered with the Bahamas Entrepreneurial Venture Fund Ltd. (BEVF) to assist with the execution of one million dollars in loans as a part of the Access Accelerator’s Micro, Small and Medium-sized Enterprise (MSME) Loan Guarantee Programme.
The programme is a product of funding through the Inter-American Development Bank (IDB). The funding gives the Government of The Bahamas $25,000,000 for a Credit Enhancement Programme, of which $22,000,000 guarantees loans to MSMEs through the Access Accelerator over five years.
The Access Accelerator has partnered with financial institutions like BEVF to facilitate the distribution of loans to small businesses. The loans are guaranteed up to 75% based on the funding provided by the IDB. However, to incentivize special industries some guarantees will be up to 90%. The industries include but are not limited to, fishing and farming, manufacturing and value-added processes, orange economy and technology.
Davinia Bain, Executive Director of the Access Accelerator, thanked BEVF for seeing the potential of the small business sector and agreeing to be a part of the programme.
Bain said, "This guarantee loan programme will broaden small businesses access to funding that is normally difficult to receive through a normal commercial bank loan process. The Bahamas Entrepreneurial Venture Fund choice to partner to assist with the facilitation of the guaranteed loans speaks to their dedication to the success of Bahamian businesses. We thank them for taking this step. Together, we are accelerating access, opportunities and the impact of the small business sector on the overall economy – this is the work that makes it all worthwhile."
Michael Cunningham, Chairman of the BEVF, described the partnership as a privilege, noting that the Access Accelerator has filled a void that existed in the organization.
Cunningham said, "We count it a privilege to assist the Access Accelerator in the execution of the MSME Loan Guarantee Programme. Since the inception of the Access Accelerator, the relationship that the Bahamas Entrepreneurial Venture Fund Limited (BEVF) has built with the organization has made it very easy to work together to adjudicate such loans. The BEVF's experience and working knowledge with the local SMEs enhanced our effectiveness in assisting the Access Accelerator in executing loan applications."
He continued, "The partnership arrangement with the Access Accelerator has filled the void that existed with the BEVF, i.e., coaching, training, and development of entrepreneurs prior to accessing capital. The BEVF has also partnered with the Bahamas Development Bank and the Bahamas Agricultural Industrial Corporation with the mandate to eliminate duplications, reduce cost and become more relevant and efficient in assisting SMEs in The Bahamas."
The Access Accelerator is the product of a tripartite arrangement between the Government, through the Ministry of Finance, University of The Bahamas (UB) and the Bahamas Chamber of Commerce and Employers Confederation (BCCEC). The Centre works to guide the development, funding, growth, and evolution of Micro, Small and Medium-sized Enterprises (“MSMEs”) in The Bahamas. Visit us at www.accessaccelerator.org.
Disney Cruise Line, Access Accelerator Small Business Development Centre announce small business grant programme
ELEUTHERA, Bahamas (April 25, 2021) – The Eleuthera Business Hub, a partnership between the Eleuthera Chamber of Commerce, Access Accelerator Small Business Development Centre and Disney Cruise Line, is now open to support small businesses and entrepreneurs in Central and South Eleuthera. Located in the Market Place Shopping Center in Rock Sound, the Eleuthera Business Hub provides business owners with access to shared workspaces and full-service office amenities, including training and meeting rooms equipped with the latest audiovisual equipment, open desks and private office spaces available to rent on a monthly, quarterly or annual basis. Future programming at the Eleuthera Business Hub will be delivered in partnership with Access Accelerator. These services will include business development, business communication training, customer service training, business mentorship and other seminars and programming designed to empower local businesses and entrepreneurs. “Whether business owners are seeking dedicated office space, meeting rooms or access to technology, we’re delighted to serve the small business community of Eleuthera,” said Candice Turnquest, executive director of the Eleuthera Chamber of Commerce. “We’re grateful to our many partners who have come together to support the success and growth of business and entrepreneurship on the island of Eleuthera.” Small Business Grants of $5,000 Will Be Offered In celebration of the grand opening of the Eleuthera Business Hub, Disney Cruise Line has partnered with Access Accelerator to sponsor small business grants in the amount of $5,000 each for local businesses across a variety of industries, ranging from e-commerce and delivery services to tourism and construction. Both new and existing businesses are eligible to receive small business grants. The application period will open on May 10. Interested applicants may contact Access Accelerator Business Advisor Sharon French at sharon.french@sbdcbahamas.com to schedule an appointment in person or apply online at www.accessaccelerator.org. “The economic strength of communities is often built on the success of entrepreneurs and small businesses,” said Kim Prunty, vice president of public affairs for Disney Cruise Line. “These combined efforts are intended to help local businesses maximize their involvement in projects underway in Eleuthera, including ours at Lighthouse Point.” Disney Cruise Line committed more than $1 million to fund construction and operation of the Eleuthera Business Hub and its programming over the next three years. Disney Cruise Line also plans to open a small office in the facility in the future to provide a convenient touchpoint between the company and local entrepreneurs, small businesses and community organizations. “The Eleuthera Business Hub is a prime example of the incredible synergy that is ignited when the private sector recognizes a need and steps in to assist,” said Access Accelerator Executive Director Davinia Grant. “We celebrate the opening of the Eleuthera Business Hub and the launch of the Disney grant program, and are excited about how these combined initiatives will positively impact Eleuthera for years to come." Additional sponsors include Cable Bahamas Business Solutions, who equipped the center with the latest technology solutions, including phone, high-speed internet and printing services, and the University of The Bahamas. "We’re proud to be a part of this initiative,” said John Gomez, Chief Executive Officer for Cable Bahamas. “Cable Bahamas understands how important it is for small businesses and entrepreneurs to have access to essential tools, like high-speed internet, in order to successfully run their businesses. We’re pleased to offer these resources and be a part of this forward-thinking approach to growing the economy in Eleuthera.” University of The Bahamas (UB) also affirmed its commitment to helping cultivate an environment in which small businesspersons can thrive. “We applaud the launch of the Eleuthera Business Hub,” noted University of The Bahamas President Dr. Rodney D. Smith. “UB and its United States Foundation remain committed to the success of Eleuthera, growing its business capacity and extending access to business and management training for entrepreneurs. When our small business owners receive the education and support that they need, our economy is positively impacted.” For more information about EBH, visit https://www.eleutherachamberofcommerce.com/businesshub
