Are you a tradesperson in need of new tools for your trade? A new programme, the Tradesperson Ownership Opportunity Loan (TOOL), offers financing with interest rates as low as nine per cent. However, the MSME Alliance believes these rates are too high and is advocating for a three-point reduction. Let’s delve into the details of this initiative and the proposed enhancements:
- The Development Bank of Jamaica has allocated $100 million to the TOOL programme, allowing individuals in various trades to borrow up to $500,000 for tool acquisition. The goal is to support at least 200 tradespersons, but more beneficiaries are expected due to lower loan amounts.
- While borrowers can access up to $500,000 individually, DBJ will cover up to 90 per cent of the project cost. Loan terms range from six to 24 months, with a maximum interest rate of nine per cent per annum.
President of the MSME Alliance, Donovan Wignall, appreciates the initiative but emphasizes the need for lower interest rates. He suggests that a six per cent interest rate would be more reasonable. The targeted trades for the TOOL programme include plumbers, tilers, electricians, barbers, and more. Participants can also access financial literacy training and be registered in the HEART/NSTA Trust skills bank.
The TOOL programme has commenced, with borrowers approaching DBJ’s microfinancing partners for loans. Partners such as JN Bank, Lasco Microfinance, and EXIM Bank Jamaica will provide sub-loans for tool acquisition. This swift approval process ensures quick access to funds for purchasing essential tools.
Tools can range from basic hand tools to specialized instruments, and suppliers like Delta Supply Company and Total Tools are participating in the programme. The goal is to support independent contractors by helping them enhance their capabilities and quality of work.
Wignall points out that the loan ceiling of $500,000 may be insufficient for some MSMEs needing pricey equipment. He suggests that the ceiling could be increased to $1.5 million in the future based on demand and usage.
In conclusion, the TOOL programme offers valuable support for tradespersons, but adjustments such as lower interest rates and increased loan caps could further enhance its impact. If you’re a tradesperson in need of tools, consider exploring this initiative for financial assistance.
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