NASSAU, BAHAMAS — The Access Accelerator Small Business Development Centre and Fidelity Bank Ltd have partnered to facilitate $5 million in loans as a part of the Access Accelerator’s MSME Loan Guarantee Programme.
In total, the programme has $16 million allocated between three partner financial institutions — $1 million by the Bahamas Entrepreneurial Venture Fund, $5 million by Fidelity and a third partner soon to be announced. More financial institutions are expected to join to assist in facilitating the $22 million in loans for micro, small and medium-sized enterprises funded by the Inter-American Development Bank (IDB).
Nicholas Higgs, Access Accelerator deputy director and chief of operations, said: “The guarantee is for our partnering financial institutions. It lessens their risk of facilitating loans to small businesses because the institutions know that regardless, through the funding provided by the IDB, they will be covered for 75 percent to 90 percent of the loans given.
“Where small businesses win in this situation is that the environment for funding is more appealing to financial institutions. This means more opportunities for funding and a higher chance for approvals as more funding agencies take the step to help support the small business sector by being a part of this programme.”