27th November 2020
CAFF Business Recovery Programme (CAFF-BRP) launched
By Department of Economic Development
On Friday November 20, 2020, the Department of Economic Development, Transport and Civil Aviation in collaboration with the Saint Lucia Development Bank (SLDB) launched the Climate Adaptation Financing Facility, Business Recovery Programme (CAFF-BRP). The launch, which was held at the studios of the Government Information System is one of thirty-two (32) initiatives which forms part of Saint Lucia’s Economic Recovery and Resilience Plan (ERRP) launched on July 12, 2020. The EERP is the Government’s flagship response strategy intended to cushion the impact of the COVID-19 Pandemic and to curtail the negative fallout the virus is having on the Saint Lucian economy and society.
The CAFF-BRP was formulated after months of negotiations with the World Bank to allow the Government of Saint Lucia to repurpose a portion of the (CAFF) which is part of the broader Disaster Vulnerability Reduction Project (DVRP). The CAFF-BRP creates a second line of credit in order to make available much needed liquidity to the Micro, Small and Medium Enterprise Sector (MSME) in the form of a mixture of grant and low-cost loans, while the original CAFF which provides credit for climate disaster resilience building for the private sector continues to be offered by the SLDB.
Mr. Vincent Boland Managing Director of the Saint Lucia in explaining the CAFF-BRP stated “Cognizant of the deleterious impact Covid-19 is having on the business sector, the Government and the SLDB took the bold decision to provide the CAFF-Business Recovery Programme funds to the SLDB at a rate of 0.0 percent, to ensure that CAFF-BRP loans are made as affordable as possible and to allow the SLDB to incorporate a grant component into each CAFF-BRP loan provided to the business sector”. The Managing Director further stated that “As a result, the Saint Lucia Development Bank will be on-lending the CAFF-BRP loans at a starting interest rate of 3.75 percent, with the minimum loan amount of $20,000.00, while the maximum loan is capped at $200,000.00. Grants up to 15% of the loan but capped at $5,000, $10,000 and $20,000 for Micro, Small and Medium enterprises respectively”.
The CAFF-BRP grant and loans will be provided for projects that support business continuity and recovery from the impact of the Covid-19 Pandemic and or for climate resilience with a grace period of six (6) months.
The Executive Director of the Saint Lucia Chamber of Commerce, Industry and Agriculture Mr. Brian Louisy - addressing the audience at the launch, pointed out that “Our Small business sector has been more severely affected by COVID-19 than their larger counterparts, for a number of reasons. The Chamber’s COVID-19 Impact Survey Take 2 points this out very clearly, with the small and medium businesses experiencing greater, loss of sales and revenue, than larger businesses, while, performing equally as well in retaining staff and maintaining salary levels.”
Mr. Vickram Cutaree, the World Bank’s Programme Leader for Sustainable Development and Infrastructure in the Caribbean, congratulated the Government of Saint Lucia and the Saint Lucia Development Bank on the launch of the CAFF Business Recovery Program, which demonstrates the country’s commitment to supporting the viability of its small businesses, farmers and fisherfolk during these unprecedented times.
Prime Minister, Allen Chastanet, addressing both the in studio and virtual audience thanked the World Bank for its nimbleness and responsiveness and for a quick turn-around on this initiative during this trying period.
The Hon. Guy Joseph, Minister with responsibility for Economic Development, Housing, Urban Renewal, Transport and Civil Aviation, also thanked the World Bank for allowing Saint Lucia to leverage the Disaster Vulnerability Reduction Project funds to respond to this pandemic. He noted that funds from the DVRP were used to convert the 133-year-old Victoria Hospital into a Respiratory Clinic, as well as to stimulating economic activity through the fast tracking of several disaster resilience construction projects, in addition to desilting initiatives which were timely given the deluge of precipitation Saint Lucia witnessed over the past two week.
Permanent Secretary in the Department of Finance Ms. Esther Rigobert in her vote of thanks noted that given that the DVRP is a syndicated loan/grant facility, approvals were needed from several agencies to bring the CAFF-BRP to fruition. These agencies included the World Bank, Climate Investment Fund, European Union, and ACP-EU Natural Disaster Risk Reduction Program.
Business interested in participating in the Climate Adaptation Financing Facility – Business Recovery Programme are asked to call the SLDB at +1-758-456-7532 or visit the SLDB’s website at https://www.sldb.lc/.
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