Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC)
St. Kitts-Nevis-Anguilla National Bank Ltd. is committed to serving the needs of micro, small and medium-sized enterprises throughout the Federation. Our partnership with the Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) fosters a seamless experience for businesses to obtain financing.
Through this partnership, a Loan Guarantee Programme was established. The Program offers up to 80% guarantee to secure financing. There are three Guarantees available:
Classic Guarantee – Maximum Loan Amount $300,000
Working Capital Guarantee – Maximum Loan Amount $200,000
Start-Up Guarantee – Maximum Loan Amount $100,000
Programme Details
| Classic Guarantee | Working Capital Guarantee | Start-up Guarantee | |
|---|---|---|---|
| Use of Funds | Working Capital, Inventory Purchase, Expansion, Overdraft | Working Capital needs as business gets back to normal | Working Capital, Inventory Purchase, Expansion, Overdraft |
| Offer Period | No limit | 12 months in the first instance | 12 months in the first instance |
| Maximum Loan Value | $300,000 | $200,000 | $100,000 |
| Maximum Guarantee Value | $225,000 | $160,000 | $80,000 |
| Maximum Guarantee Percentage | 75% | 80% | 80% |
| Equity Contribution | 25% | 10% | 10% |
| Collateral Required | 25% | 20% | 20% |
| Debt Service Ratio | 1.25:1 | 1.10:1 | 1.10:1 |
| Tenor of Guarantee | 10 years | 5 years | 10 years |
| Interest Rate | Set by Participating Lender | Set by Participating Lender | Set by Participating Lender |
| Age of Business | > 2 years | > 2 years | 3 months to 2 years |
| Special Condition 1 | Development of a sinking fund allowed | Development of a sinking fund allowed | |
| Special Condition 2 | 1 year moratorium on principal repayment allowed |
Frequently Asked Questions
The ECPCGC guarantee is an arrangement between the financial institutions in the region, their borrowers and the Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC), whereby some of the collateral / security is provided by ECPCGC to the banks to help secure the loans sought by the Micro, Small and Medium Entrepreneurs (MSMEs).
The programme is funded by six member states in the OECS and is supported by the Eastern Caribbean Central Bank and the World Bank.
Some commercial banks and development banks are already signed to the programme. Credit unions would also be admitted. There are Participating Financial Institutions in the following islands:
Antigua and Barbuda
Antigua Commercial Bank Ltd.
Eastern Caribbean Amalgamated Bank Ltd
Dominica
National Bank of Dominica Ltd
Grenada
Grenada Co-operative Bank Ltd
Grenada Development Bank Ltd
St. Kitts and Nevis
St. Kitts Nevis Anguilla National Bank Ltd
St. Lucia
Bank of St. Lucia Ltd
First National Bank St. Lucia Ltd
St. Lucia Development Bank Ltd
St. Vincent and the Grenadines
negotiations in progress
1. The entrepreneur/MSME approaches the bank, credit union or development bank for a business loan.
2. The entrepreneur/MSME provides evidence of his/her business income, expenses and identifies why the funds are needed.
3. The bank does an assessment, and if the project is sound, the bank would ask the entrepreneur/MSME to show his/her contribution to the project, and to outline what collateral/security there is available to pledge to the bank.
4. Once the bank is satisfied that the project is sound, and the loan can be repaid, but the entrepreneur/MSME lacks the full amount of collateral/security required, the bank applies to ECPCGC for a guarantee.
The business must be registered
Annual revenue must be no more than XCD2m
Number of employees must be less than 50 permanent
The borrower must provide 10 – 25% equity in the project for which the loan is being sought.
The borrower must provide collateral of 20-25% to the financial institution
The business may be for profit or not for profit
There is no limitation on the type of business as long as there is no danger presented to the environment as indicated on the World Bank Exclusion List that is available at the financial institution
The age of the business can range from 3 months and up, depending on the guarantee being sought
The business must have all the required national permits
There are 3 guarantee products: the Classic Guarantee, the Working Capital Guarantee and the Start-up Guarantee. For more details, refer to Product Sheet and/or ECPCGC Brochure.
There is no limit on the number of guarantees per country or per financial institution. Guarantees would be issued on a “first come, first served” basis. Different countries are at different stages of development and would leverage the programme differently during its lifetime.
The guarantee is issued by ECPCGC and the eligibility requirements for MSMEs are enshrined in the Participating Lenders Agreement, which is signed by ECPCGC and the financial institution. Financial Institutions must comply with these conditions.
Guarantors are accepted. They must provide a Statement of Affairs during the application process and must be approved by the financial institution.
The lender can extend the term of the loan, but the guarantee would cover only 10 years. The guarantee expires after that period.
XCD 300,000.00 is the maximum loan amount, and the maximum guarantee amount is XCD 225,000.00. The actual amount is determined by the product being sought.
According to our operational guidelines, the maximum turnaround time for ECPCGC approval is 5 working days. However, this does not include the time that the financial institution would spend analyzing the loan application. This varies from bank to bank.
There is no penalty for early repayment of a loan.
ECPCGC works with the financial institution to determine which series of prescriptions could be used to solve the issues encountered.
The same rules apply for all financial institutions under the scheme.
There is a fee of 2.3% payable annually on the outstanding balance of the guarantee.
The interest rate will be determined by the financial institution depending on the risk of the facility being granted. ECPCGC would not set interest rates but would ascertain that they are aligned to the market.
The borrowers deal directly with the financial institutions who deal with ECPCGC. There is, however, a Grievance Redress Mechanism available on the ECPCGC website at www.ecpcgc.org.
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