Fidelity Bank commits $5 mil. to Access Accelerator loan guarantee program

Fidelity Bank Limited has committed to facilitating $5 million in loans as a part of the Access Accelerator Small Business Development Centre’s micro, small and medium-sized enterprise (MSME) Loan Guarantee Program, the Access Accelerator revealed yesterday.

Fidelity is the first Bahamian commercial bank to sign on to the organization’s guarantee program.

According to an Access Accelerator statement, the program now has $16 million committed to it through the Bahamas Entrepreneurial Venture Fund ($1 million), Fidelity ($5 million) and a third financial institution that is expected to be named soon.

“More financial institutions are expected to join to assist in facilitating the $22 million in loans for micro, small and medium-sized enterprises funded by the Inter-American Development Bank (IDB).”

Access Accelerator Deputy Director and Chief of Operations Nicholas Higgs explained in the statement that the loan guarantees are designed to give MSMEs the best chance at being funded by local commercial banks and other lending institutions.

“The guarantee is for our partnering financial institutions,” Higgs said. “It lessens their risk of facilitating loans to small businesses because the institutions know that regardless, through the funding provided by the IDB, they will be covered for 75 percent to 90 percent of the loans given.”

“Where small businesses win in this situation is that the environment for funding is more appealing to financial institutions. This means more opportunities for funding and a higher chance for approvals, as more funding agencies take the step to help support the small business sector by being a part of this program.”

Fidelity Group’s Chief Executive Officer Gowon Bowe said the partnership with the Access Accelerator will further support national development and educate business owners. He explained that both entities share a “common vision for national development through the expansion of small and medium-sized businesses.

“Businesses in the program are not simply provided access to funds, but are rather mentored through the business life cycle, with financing being but one aspect, albeit an integral aspect,” Bowe said.

“By educating businesses on the best practices in expanding their access to their customers’ wallets, utilizing digital payment solutions and building equity and liquidity, the bank and the Access Accelerator can nurture the highest possible probability of success for the impacted MSMEs.”

The IDB is also supporting the Access Accelerator’s work developing small businesses and entrepreneurs. IDB Country Representative Daniela Carrera-Marquis said the bank sees the continued development of businesses in The Bahamas as a top priority.

“This initiative assists MSMEs in securing short- and long-term financial opportunities that will in turn help the country’s economic recovery coming out of this pandemic,” Carrera-Marquis said.

“Therefore, it is critical that we continue to support smaller businesses as an engine of recovery that acts as a primary source of employment for the nation and major suppliers of goods and services to the general population.”

The post Fidelity Bank commits $5 mil. to Access Accelerator loan guarantee program appeared first on The Nassau Guardian.

source https://thenassauguardian.com/fidelity-bank-commits-5-mil-to-access-accelerator-loan-guarantee-program/