KINGSTON, Jamaica — Increasing demand for capital has prompted National Commercial Bank Jamaica Limited (NCBJ) to double the size of its SME Growth Fund to $2 billion, following the full take-up of its $1-billion facility last year.

The new SME Growth Fund II will provide loans of up to $35 million at rates as low as 9.75 per cent to support working capital, equipment and machinery, heavy-duty vehicles, and other expansion projects.

“The depletion in funds last year happened so quickly that we broke that record, and my team would have had to make the decision around doubling the funding or extending the promotion,” said Khason Morgan, manager of SME portfolio at NCB, during the launch on Thursday at the AC Hotel in Kingston.

NCB said the increased allocation is intended to broaden access, though demand could again see the facility fully subscribed in short order. Unlike the first fund, which had no fixed closing date and remained open until fully disbursed, the new facility will run for a limited period between April and June 2026.

HOLNESS…the rate you apply for is the rate for the facility; that’s why it’s very important to put in, in this definitive time period, your application to be a part of it

The timeline reflects the pace at which the previous allocation was exhausted, with 30 per cent of the time originally allotted still remaining when the fund was depleted. The first growth fund, which ran from March to July but closed in June, supported approximately 100 customers. This time, the bank is targeting at least 57 businesses, with expectations that smaller loan sizes could allow for more micro-enterprises to benefit.

“We saw there was a distinct need in the market for financing for our SME clients, particularly after Hurricane Melissa, where we saw several businesses would have been impacted. We saw there was a need for capital,” said Manager of Product Delivery & Portfolio Management at NCB, Garfield Holness, in an interview with Observer Online.

Interest rates under the facility are variable; however, borrowers who secure loans will retain the agreed rate of the facility, subject to standard notice requirements in line with Bank of Jamaica guidelines.

“The rate you apply for is the rate for the facility; that’s why it’s very important to put in, in this definitive time period, your application to be a part of it,” Morgan shared.