Q: What is the procedure for applying for funding?

Applications for funding should be presented in a business plan . Agricultural and RE and EE projects have additional requirements.

Question 1

Is EGFL a Government institution?

glueadmin · Accepted Answer

EGFL is a joint public/private sector institution.

Question 2

What kinds of projects does EGFL finance?

glueadmin · Accepted Answer

EGFL provides financing for capital and working capital purposes across many sectors of the economy, including agriculture, manufacturing, tourism, renewable energy (RE) and energy efficiency (EE). Funding is also provided for innovative projects.

Question 3

What is the procedure for applying for funding?

glueadmin · Accepted Answer

Applications for funding should be presented in a business plan. Agricultural and RE and EE projects have additional requirements.

Question 4

Is collateral required to get funding from EGFL?

glueadmin · Accepted Answer

Collateral is required for the financing approved by EGFL, except for the funding approved for innovative business proposals. Novel business ideas are eligible for equity financing.

Question 5

Is collateral required for SHIF loans?

glueadmin · Accepted Answer

Question 6

What is the minimum and maximum available for investing?

glueadmin · Accepted Answer

Financing is available from BDS$100,000 to (BDS$1.5 million) BDS$5.6 million, depending on the type of funding required. There is some flexibility in relation to the lower limit.

Question 7

What is the repayment/redemption period for a loan/investment?

glueadmin · Accepted Answer

Repayment periods are normally 10 years or less for capital projects. However, loans may be granted for up to 15 years; equity investments are expected to be redeemed within 7 years. Loans can attract a higher interest rate in years 11 to 15.

Question 8

What is the interest rate on loans from EGFL?

glueadmin · Accepted Answer

The interest rate varies between 3.75% per annum to 7.5% per annum, depending on the type funding provided. These rates are variable except on financing for small hoteliers that are members of the Small Hotels of Barbados Inc (SHBI). Funding provided to members of SHBI is at a fixed rate. Interest is calculated on a reducing balance basis.

Question 9

Does my business have to be incorporated to get funding from EGFL?

glueadmin · Accepted Answer

No, incorporation is not a necessity to access funding.

Question 10

How long does it take to get a loan/ investment decision?

glueadmin · Accepted Answer

EGFL strives to make investment decisions within 4 to 8 weeks after the receipt of an application. However, the approval process depends on the quality and completeness of information submitted by applicants. Investment decisions are made by different Investment/Management Committees, depending on the type of funding requested and some of these decisions have to be ratified by EGFL’s Board of Directors.

Question 11

What role will EGFL play in my business?

glueadmin · Accepted Answer

EGFL functions as a strategic partner and can provide access to our network of business contacts and clients. We can also offer technical assistance, which is reserved for existing clients. We do not get involved in the day to day management of your business.

Question 12

What role does Government play at EGFL?

glueadmin · Accepted Answer

Government provides the funds used by EGFL to invest in businesses.

Question 13

Will my information be kept confidential by EGFL?

glueadmin · Accepted Answer

All information received by EGFL from applicants and clients is held in the strictest confidence.

Question 14

Does EGFL provide debt consolidation loans?

glueadmin · Accepted Answer

Up to a maximum of 25% of the proceeds of a loan can be used to liquidate existing debt of the company. This is only done to smooth out debt service payments or if required to give EGFL the first charge over a company's assets.

Question 15

What kinds of projects does the SHIF finance?

glueadmin · Accepted Answer

The SHIF provides financing to members of the Small Hotels of Barbados Inc. (SHBI) for the refurbishing and expansion of their hotel properties.

Question 16

How much funding can my business receive from the SHIF?

glueadmin · Accepted Answer

Your business may qualify for a maximum of BDS$5.60 million.

Question 17

How can my hotel qualify for funding from the SHIF?

glueadmin · Accepted Answer

Your small hotel must:

be a member the Small Hotels of Barbados Inc. (SHBI);

comply with the minimum standards as established by the European Travel Trade; and

be registered and certified by the Barbados Tourism Authority;

provide EGFL with proof that, (a) all statutory payments (N.I.S, P.A.Y.E. taxes, etc.) are current, or (b) that satisfactory arrangements have been made to bring any arrears current

Question 18

What is the procedure for applying for funding?

glueadmin · Accepted Answer

Applications for funding should be presented in a business plan. Applicants will also need to submit copies of all corporate documentation such as, the Certificate of Incorporation, Articles of Incorporation, Notice of Directors or Notice of Change of Directors, Notice of Address or Notice of Change of Address; and proof of Governmental or corporate approvals, permits and consents required in connection with the execution of the project.

Question 19

Who makes the loan decisions?

glueadmin · Accepted Answer

All loan decisions are made by the Investment Committee of the SHIF.

Question 20

How long does it take to get a loan decision?

glueadmin · Accepted Answer

EGFL strives to get investment decisions within 4 to 8 weeks after the receipt of an application. However, the approval process depends on the quality and completeness of information submitted by applicants.

Question 21

What is the repayment period for SHIF loans?

glueadmin · Accepted Answer

Loans must be repaid in full within 15 years. This includes a 5-year moratorium on the repayment of interest and principal. During the moratorium period interest accrues and the loan balance is increased by the unpaid portion of this interest.

Question 22

Is interest charged for these loans?

glueadmin · Accepted Answer

Interest is 5% per annum fixed and is capitalised over the five-year moratoria period.

Question 23

Is there a deadline for the submission of applications to the B.E.S.T. Programme?

glueadmin · Accepted Answer

There is no deadline, but the availability of investment funds and matching grants is not unlimited, so early application is advisable.

FAQs

Frequently Asked Questions

Is EGFL a Government institution?

What kinds of projects does EGFL finance?

What is the procedure for applying for funding?

Is collateral required to get funding from EGFL?

What is the minimum and maximum available for investing?

What is the repayment/redemption period for a loan/investment?

What is the interest rate on loans from EGFL?

Does my business have to be incorporated to get funding from EGFL?

How long does it take to get a loan/ investment decision?

What role will EGFL play in my business?

Useful Links