Small and medium-sized enterprises (SMEs) can now access up to $250 million in loans through the National Commercial Bank of Jamaica’s SME BOOST.

On Wednesday at the Jamaica Manufacturers and Exporters Association Networking Forum held at the NCB Sports Club in St Andrew, head of retail banking Sheree Martin announced that the bank has set aside a pool of funds for SMEs to draw on as they face the rising cost of raw material and energy brought on by the Russia-Ukraine war.

“At the onset of the COVID-19 pandemic, NCB launched a $20-billion pool, accessible exclusively to SMEs in need of bolstering during difficult times. We have continued to lend from this pool to further aid recovery efforts and now, despite the unsettling global events due to the war in Ukraine, we have created a special subset in that pool and have chosen this occasion as the perfect place to announce the launch of NCB SME BOOST,” she shared.

While noting that the bank is aiming to empower SMEs to continue driving growth and building resilience, Martin said loans under the NCB SME BOOST are not only available to players in the manufacturing and exporting sector, but are extended to companies engaged in agro-processing, renewable energy and tourism.

To this end, she invited companies from these sectors to apply for the credit facility in order to boost and transform their businesses while navigating their businesses through “an uncertain environment” marked by rising interest rates.

“With SME BOOST, a business can access up to $250 million in loan funding to support working capital, investments in machinery, retooling and other equipment, facilities upgrade, business expansion, energy projects and other purposes which may be crucial for your business to take the next step,” the NCB retail banking head explained.

What’s more, NCB will maintain a fixed interest rate for the remainder of 2022.

Supporting SMEs’ development and expansion will contribute to boosting economic growth and setting Jamaica on a path to long-term economic stability and sustainability, Martin asserted. However, she pointed out that manufacturing companies were most at risk of rising interest rates, energy costs and raw material cost.

“While food costs affect us all, the soaring cost of energy is a matter of major concern especially for local manufacturers who must contend with the immediate impact of increasing energy costs. This is significant as it can impact potential growth of the economy as many of our manufacturers and exporters form a key segment of the economy, that is our SME pool,” Martin explained.

“With the continuous, unpredictable and unprecendented rise in fuel costs, there is much uncertainty among our SME owners and entrepreneurs, and with good reason. Production and manufacturing costs are usually part of your operational expenses and while energy costs have always fluctuated, the war has created a ripple effect that has seen several increases over short periods, which means your operational costs are surging, with no sure end in sight,” she added.

Pointing to Statin data, Martin said manufcaturing at one point in Jamaica’s history accounted for 20 per cent of the economy. Now, however, the sector only contributes eight per cent with rising interest rates expected to cut this number lower.