Frequently Asked Questions
EGFL is a joint public/private sector institution.
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.
Applications for funding should be presented in a business plan. Agricultural and RE and EE projects have additional requirements.
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.
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.
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.
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.
No, incorporation is not a necessity to access funding.
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.
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.