NASSAU, BAHAMAS — Micro, small, and medium enterprises (MSMEs) owned, led by, or of benefit to women, youth, and persons with disabilities will have access to 0 to 2 percent low-interest loans starting this month.
The Bahamas Development Bank (BDB) and the United Nations Entity for Gender Equality and the Empowerment of Women Multi-Country Office – Caribbean (UN Women MCO Caribbean) recently signed a partnership agreement to provide the new, dynamic concessional financing to agriculture, sustainable tourism, and creative businesses.
UN Women, through project funding from the Joint Sustainable Development Goals (SDG) Fund, will invest $100,000 USD in the low-cost loan product developed by BDB.
Nicholas Higgs, BDB’s Managing Director, described the financial product as a “game-changer” for The Bahamas.
“By providing low-interest loans to MSMEs, we are empowering local businesses to thrive, innovate, and contribute significantly to our economy. This initiative supports economic growth and promotes social inclusion by targeting underrepresented groups such as women, youth, and people with disabilities. It is a pivotal step towards a more equitable and prosperous future for our nation.”
Higgs added: “Loans are useful for business growth. This new product allows businesses to scale up production, improve products, stay competitive, enter new markets or take advantage of growth opportunities.”
Loan applications will be accepted until 13 September 2024. The concessional financing will allow businesses to access the 0 to 2 percent interest rate for the first two years. Financing beyond the two years or exceeding $100,000 will be subject to standard BDB interest rates.
The loans are made possible through blended financing, which uses public and development funds to subsidize interest rates on traditional loans taken by the Bahamas Development Bank.
Tonni Brodber, Representative UN Women MCO Caribbean, said, “For many businesses, access to loans can mean the difference between staying small or achieving significant growth, driving innovation and economic development in their communities.”
“A major focus for this fund is supporting women and young entrepreneurs in overcoming existing financing gaps to support their full and equal economic and social participation. Recognizing that women are less likely to take out loans when compared to men, closing the gap between the need for financing and the access to financing is crucial for women entrepreneurs to overcome economic challenges, enhance their financial independence, and enable women to contribute to the overall economic development and job creation in The Bahamas.”
The Bahamas Development Bank and UN Women have partnered through the Joint SDG Fund Building Back Equal through Innovative Financing for Gender Equality and Women’s Empowerment Programme since 2022. It is being jointly implemented in The Bahamas and Bermuda by BDB, the Ministry of Youth, Social Development and Seniors in Bermuda, and four United Nations agencies including UN Women, United Nations Educational, Scientific and Cultural Organization (UNESCO), Food and Agriculture Organization of the United Nations (FAO), and United Nations Development Programme (UNDP). The program is scheduled to run until 1 October 2024.
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