EGFL accepts no more than 49% of the business’ value in the form of Cumulative Preference shares in exchange for the monetary investment in the company. An exit strategy forms part of the equity agreement whereby at the end of five (5) years, the shares are redeemed by the company at a predetermined price. Project ideas will be assessed according to the following criteria:
The business idea should be innovative and marketable with the potential to generate attractive returns.
The ability to generate sustainable employment must be an important feature of the project.
Projects must be majority-owned by residents of Barbados.
The potential to earn or save foreign exchange would be a definite asset.
A proposal would be viewed more favourably if it has a focus in one of the following sub-sectors;
(a) Information Technology
(c) Culture, including music, arts and craft, film etc.
(d) Non-traditional agriculture.
Resources allocated to innovative projects may not be used to purchase land, land and buildings or finance real estate ventures except where the buildings are to be used for productive purposes. In such cases only the costs of erecting or renovating the buildings will be financed.
Documentary evidence of approvals, permits and consents associated with the execution of the project must be presented to EGFL prior to disbursement of funds.