The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

RECOVERING businesses on Grand Bahama can access up to $500,000 in credit from commercial banks through a government guarantee programme, according to Davina Blair, executive director of Small Business Development Centre.

Ms Blair said the government would be guaranteeing up to 75 percent of the loans to help businesses affected by the storm to get back up and running.

"The commercial banks are working with us to help you," she said. "At the moment, we have RBC, Scotiabank, CIBC, and Fidelity that (have) signed on to the programme."

According to a survey conducted immediately after Hurricane Dorian by the Grand Bahama Chamber of Commerce, 64 percent of businesses with damage had no insurance.

The chamber reported that more than half of the businesses surveyed were closed a month after the storm, with at least 11 percent planning not to reopen, and many still uncertain about what they would do. According to GB Chamber of Commerce President Greg Laroda, initially one of the major challenges expressed by businesses impacted by the storm was the need for funding, grants and low-interest loans.

During a seminar for SMEs in Grand Bahama on Monday, Ms Blair talked about several loans and grants for hurricane recovery that are available to businesses in GB and Abaco.

"You have to have been active before the hurricane, and you cannot be ducking paying licence fees, and there are some people who somehow miraculously are always right under $100,000 in revenue," she said. "It is okay to show revenue higher than $100,000. VAT is not your enemy if you are filing properly and you are able to pass through all the things you bring into your business you pay VAT on. So, you shouldn't have a problem doing proper reporting to get proper credits for those things."

Compliance is mandatory, she stressed, adding that businesses must be compliant with licence fees and other tax related fees before they can access money.

The first step to qualify for the funding, Ms Blair said, especially businesses seeking high level funding is providing financial records. "Financial records would be mandatory, there is no compromise," she said.

There are smaller grants that are available too, she said, such as the $5,000 stand-alone grant for businesses needing to replace equipment, replenish inventory, buy insurance, and assist with helping with employee pay roll for a couple of months.

There is also a $20,000 matching grant, which is a grant that is matched with any other form of funding that might exists whether through SBDC or outside, Ms Blair explained.

She noted that in most cases persons have been able to match a $20,000 grant with a micro-loan and with a stand-alone grant, receiving $40,000 in assistance to help with recovery.

She also reported that there is a micro-loan of up to $15,000.

With the guaranteed loans, the executive director stated that there is no restriction on the type of business, but priority is given to companies that can show or justify how critical their business is to the recovery of the economy.

She indicated that builders, contractors, electricians, fishermen, and farmers would be seen automatically as critical, as well as alternative energy, and restaurants.

"The commercial banks are working with us to help you," she said. "At the moment, we have RBC, Scotiabank, CIBC, and Fidelity that (have) signed on to the programme."

According to a survey conducted immediately after Hurricane Dorian by the Grand Bahama Chamber of Commerce, 64 percent of businesses with damage had no insurance.

The chamber reported that more than half of the businesses surveyed were closed a month after the storm, with at least 11 percent planning not to reopen, and many still uncertain about what they would do. According to GB Chamber of Commerce President Greg Laroda, initially one of the major challenges expressed by businesses impacted by the storm was the need for funding, grants and low-interest loans.

During a seminar for SMEs in Grand Bahama on Monday, Ms Blair talked about several loans and grants for hurricane recovery that are available to businesses in GB and Abaco.

"You have to have been active before the hurricane, and you cannot be ducking paying licence fees, and there are some people who somehow miraculously are always right under $100,000 in revenue," she said. "It is okay to show revenue higher than $100,000. VAT is not your enemy if you are filing properly and you are able to pass through all the things you bring into your business you pay VAT on. So, you shouldn't have a problem doing proper reporting to get proper credits for those things."

Compliance is mandatory, she stressed, adding that businesses must be compliant with licence fees and other tax related fees before they can access money.

The first step to qualify for the funding, Ms Blair said, especially businesses seeking high level funding is providing financial records. "Financial records would be mandatory, there is no compromise," she said.

There are smaller grants that are available too, she said, such as the $5,000 stand-alone grant for businesses needing to replace equipment, replenish inventory, buy insurance, and assist with helping with employee pay roll for a couple of months.

There is also a $20,000 matching grant, which is a grant that is matched with any other form of funding that might exists whether through SBDC or outside, Ms Blair explained.

She noted that in most cases persons have been able to match a $20,000 grant with a micro-loan and with a stand-alone grant, receiving $40,000 in assistance to help with recovery.

She also reported that there is a micro-loan of up to $15,000.

With the guaranteed loans, the executive director stated that there is no restriction on the type of business, but priority is given to companies that can show or justify how critical their business is to the recovery of the economy.

She indicated that builders, contractors, electricians, fishermen, and farmers would be seen automatically as critical, as well as alternative energy, and restaurants.