Business Development Company Ltd (BDC) Loan Guarantee Programme is specifically designed to assist businesses in securing loans from lending agencies by providing part collateral; since a lack of collateral has been identified as the major constraint to obtaining the finances needed for business establishment and expansion.

The Loan Guarantee Programme provides to the following:

• Existing and expanding businesses
• New or start-up businesses

Financial support can be obtained for the following purposes:

• Working capital financing
• Inventory purchases
• Revolving loan facility
• Purchase of an existing business as a going concern
• Purchase of equipment

Participants in the Programme

• Guarantor - In this process the BDC acts as guarantor for loans to successful applicants.
• Lender - Any commercial bank, credit union or other lending Institution participating in the guarantee plan.
• Borrower - Any prospective or existing entrepreneur seeking funding to either expand or start-up a business.

Terms & Conditions of a Loan Guarantee

• Guarantees are provided to businesses for funding purposes upon qualification for a loan from the Lender and the BDC.
• A premium fee of 5% of the guaranteed amount is charged by the BDC for the processing of the guarantee.
• The loan repayment period is a maximum of seven (7) years.
• Maximum guarantee value- $500,000.00 or up to 85% of the value of the loan.

Eligibility Criteria

Businesses that qualify for the Loan Guarantee Programme include:

• Sole Proprietors
• Partnerships
• Franchises
• Co-operatives
• Limited Liability Companies

Owned and operated by citizens or residents of Trinidad and Tobago, operated for profit; and engaged in legitimate business activities.

Benefits of the Programme

• Improved accessibility to funding.
• Increased cash flow which can be used to assist in other business operations.
• Available requisite Business Support Services.
• Businesses partnering with the BDC through the Loan Guarantee Programme will improve their competitive advantage in the market place.

For some frequently asked questions about our Loan Guarantee Programme please visit our FAQs.

Contact our Financial Products Unit or email info@bdc.co.tt for further information