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What kinds of projects does the TLF
finance?
The TLF provides funds to:
-
renovate, expand and/or
rebuild accommodation properties with seventy-five rooms or
less; and
-
construct, equip, renovate,
expand and/or rebuild facilities used in a business which
emphasizes the historical, cultural and natural heritage of
Barbados.
Does the TLF provide debt
consolidation loans?
NO. However, up to a
maximum of 25% of the proceeds of an investment can be used to
liquidate a business? existing debt. This is only done to
smooth out debt service payments or if required to give EGFL the
first charge over a company's assets.
How much funding can my business
receive from the TLF?
Your business may qualify for a
$50,000 to $4.5 million TLF loan.
What is the procedure for
applying for funding?
Submit a well prepared proposal
that:
-
clearly defines the project
and provides cost estimates with supporting bills of quantities;
-
indicates how the proceeds of
the requested loan will be used;
-
identifies other sources of
financing if the projects? cost exceeds the amount requested
from the TLF;
-
demonstrates that the project
team has the skills and experience to successfully implement the
project;
-
provides information relating
to shares such as the number of shares held by each shareholder;
-
provides information on the
company's financial and management structure;
-
contains realistic financial
projections for 5 years (balance sheet and income statement)
with risk and sensitivity analysis. The financial
projections must show that the company is able to meet its
debt-service obligation, and earn the TLF a minimum internal
rate of return of 10%.
Before applicants can receive any
TLF funds, they must provide EGFL with proof that, (1) all
statutory payments (N.I.S, P.A.Y.E. taxes, etc) are current, or
(2) that satisfactory arrangements have been made to bring any
arrears current.
Is security required to receive
TLF funds?
All TLF loans must be secured.
Who makes the loan decisions?
All investment decisions are
made by the Board of EGFL.
How long does it take to get a
loan/investment decision?
EGFL strives to get investment
decisions within 4 to 8 weeks after the receipt of an application.
However, the actual time taken depends on the quality of
information submitted by applicants.
What is the repayment period for
TLF loans?
Repayment periods are normally 10
years or less. However, loans may be granted for longer
periods. Loans for periods greater than 10 years will
attract a higher interest rate in the years after the 10th year of
the loan.
Are moratoria on the repayment
of loans offered?
Moratoria periods, during which
only interest payments are due and payable, are offered as
follows:
-
the length of the construction
and/or installation contract if that contract is less than one
year;
-
a maximum of 1 year for loans
that are 5 years or less;
-
a maximum of 2 years for loans
over 5 years but less than or equal to 10 years; and
-
a maximum of 3 years for loans
over 10 years;
What role will EGFL play in my
business?
EGFL will function as a strategic
partner providing advisory services, access to our network of
business contacts and clients and technical assistance in some
cases. EGFL also insists that good corporate governance
practices are followed and accounting information is accurate and
kept up to date. EGFL does not get involved in the day to
day management of your business.
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