On January 2, 1998 EGFL commenced operations as a limited liability company, which provided venture capital to the SME sector. The aim was to become a minority shareholder in, and partner to, the dynamic enterprises which had significant potential for growth and development.

Within a few years of EGFL's inception, it became apparent that the local entrepreneurial class did not have a strong preference for venture capital financing alone. In response to this, EGFL was repositioned as a Fund Manager offering loans from the dedicated, sector-specific Funds which it managed. Additionally, EGFL started offering loans from its own account in 2004.

These developments have enabled EGFL to cater to a wider cross-section of businesses and allowed it to fulfil its mandate of providing development finance to the critical SME sector.

The Creation of EGFL

As a condition of its Investment Sector Loan to the Government of Barbados, the Inter-American Development Bank (IADB) required that the Barbados Development Bank be terminated because of the significant cumulative losses incurred by the bank since its establishment.

To this end, a study was commissioned by the Barbados Development Bank to determine the appropriate legislative, regulatory and fiscal framework under which a new Development Finance Institution could efficiently provide growth financing for businesses in the small and medium sized enterprise sector.

In the report Institutional Framework for the Future Direction of Development Finance in Barbados, one of the major findings was that the establishment of a new Development Finance Institution was necessary to replace the Barbados Development Bank, but the role of Government in the activities of this institution should be limited.

It is within this context that Enterprise Growth Fund Limited was established as a private sector led institution in which:

1. Government would play a catalytic role through tax concessions and the provision of seed capital; and

2. The private sector would provide the capital and manage the enterprise.


NEW SMART FUND ESTABLISHED

Funding available for renewable energy and energy efficiency projects in Barbados!

EGFL is now ready to receive applications for the Pilot Consumer Finance Facility.