Start-ups and growing businesses hoping to tap into the Development Bank of Jamaica’s (DBJ) innovation grant programmes will have to wait.

The institution confirmed last week that both the Innovation Grant from New Ideas to Entrepreneurship (IGNITE) and the Innovation Grant Fund (IGF) initiatives are currently on pause, as grant funding under the Boosting Innovation, Growth and Entrepreneurship Ecosystems (BIGEE) programme is fully exhausted.

“BIGEE has pretty much utilised all the funds that were allocated to it,” Paul Chin, manager for investor relations at the DBJ, said during the Caribbean Poultry Association’s technical symposium held at the Jamaica Pegasus hotel in Kingston.

The disclosure came as part of a broader presentation on DBJ’s role in supporting micro, small and medium-sized entreprises (MSME), and while Chin did not give a specific timeline for resumption, he confirmed that negotiations are under way to secure another round of financing from international funding partners.

“We’re always working with our international partners to see how we can access funds to provide support to MSMEs,” Chin told the Jamaica Observer in an exclusive interview. “But I can’t say when or what that will look like because I don’t deal with that aspect directly.”

The funding pause affects two of the DBJ’s most sought-after products for innovation-driven enterprises: the IGNITE, which offered up to $7 million for early-stage businesses; and the IGF, which disburses grants of up to $20 million to more established companies looking to commercialise new ideas.

Both grants fall under the BIGEE programme which was financed through a loan to the Government of Jamaica from the Inter-American Development Bank (IDB). That facility, structured to be disbursed over five years — September 2020 to March 2025 — has now run its course.

According to information posted on the DBJ’s website, the grant aspect of the programme was aimed at promoting sustainable and robust growth among start-ups and MSMEs in Jamaica. Overall, the BIGEE project was financed by a US$25 million loan from the IDB and an additional US$8.2 million non-reimbursable grant from the European Union.

Chin explained that while BIGEE was the overarching programme, grant funding was one of several streams supported under the initiative, alongside equity products like angel investment funds and technical support to incubators and accelerators.

The pause may leave a noticeable gap in Jamaica’s entrepreneurial ecosystem.

Since inception, IGNITE has supported more than 80 MSMEs, distributing over $220 million in grants, while the IGF has assisted 31 medium-sized businesses, with roughly $300 million deployed. The DBJ also channelled funding into 11 incubator and accelerator programmes, indirectly supporting another 350 businesses and helping them raise over $400 million in follow-on funding.

Together, these interventions helped bridge the financing gap between idea and execution — a space that is typically underserved in the Jamaican capital market.

While Chin noted that the DBJ continues to offer loans, credit guarantees, and equity support through other programmes, he acknowledged that the grants provided a unique level of support.

“Sometimes when we borrow from international multilaterals, those funds come with a grant component,” he told the
Business Observer. “Once we get the grants, we pass them on — but those negotiations take time, and sometimes it doesn’t quite work out the way you want.”

While innovation-specific grants are temporarily off the table, Chin pointed out that support for MSMEs hasn’t disappeared altogether. In the meantime, eligible small businesses can still apply for funding through the Gemini grant programme, which is a joint programme between the DBJ and the Jamaica Business Development Corporation (JBDC).

Growth and Expansion of MSMEs through Innovation and Capacity Building, or GEMINI for short, provides capacity-building support to MSMEs to help them meet their business needs.

While the DBJ will provide up to 80 per cent of funding towards business development services, or up to $800,000, per business, the JBDC will assess MSMEs and create a work plan to support their transition through the various stages of the business continuum. JBDC’s four business development programmes that address each business cycle are the nursery, incubator, accelerator and scale-up community.

“The GEMINI grant programme is aimed at literal hand-holding of MSMEs to get them up to speed and put them in a position to access credit in the formal financial sector,” Chin explained.

Importantly, the funding freeze applies only to grant programmes under BIGEE. DBJ’s other offerings — including loans for energy efficiency, agribusiness, and the recently announced $1 billion poultry facility — remain fully operational.

Chin said the bank is also reassessing how it serves high-growth start-ups, noting that several microfinance institutions have requested that DBJ increase its current cap on microloans, currently set at $750,000, to at least $1 million — in recognition of the growing sophistication and capital needs of micro borrowers.

“That’s something we’re currently pulling data on,” Chin said. “A request like that can’t come from just one or two institutions. We have 14 accredited MFIs, so we have to canvas all of them and then, based on the feedback, determine where the new limit should be.