The Development Bank of Jamaica (DBJ) has launched a transformative J$2 billion loan facility, named ‘ORBIT’ – Opportunities for Resilient Businesses, Innovation & Transformation. This significant financial initiative is designed to empower Micro, Small, and Medium-sized Enterprises (MSMEs) across Jamaica, addressing long-standing challenges related to scalability and access to affordable capital. The program aims to foster growth, enhance competitiveness, and drive innovation within key sectors critical to the nation’s economic development.
Addressing Critical Growth Sectors
The ORBIT programme specifically targets four high-impact industries: manufacturing, agriculture (including agro-processing), health, and the creative industries. These sectors have been identified as crucial for strengthening Jamaica’s production base and expanding its presence in global value chains. The initiative is a direct response to the persistent difficulties MSMEs have faced in securing adequate financing, often due to stringent collateral requirements and limited loan terms. DBJ Managing Director, Dr. David Lowe, emphasized that the program was developed through extensive consultations with local business communities and industry stakeholders, including the Private Sector Organisation of Jamaica (PSOJ), the Jamaica Manufacturers and Exporters Association (JMEA), and the Small Business Association of Jamaica (SBAJ), to ensure it meets genuine business needs.
Generous Financing with Flexible Terms
Under the ORBIT facility, eligible Jamaican businesses can access loans of up to J$30 million. A standout feature of the program is its collateral-free aspect, made possible through the DBJ’s Credit Enhancement Fund (CEF), which can guarantee up to 90% of the loan amount. This significantly de-risks the opportunity for businesses seeking to scale their operations. The loan terms are highly competitive, featuring a fixed interest rate of 8% for five years and a repayment period extending up to 10 years – double the duration typically offered by many financial institutions. This extended tenure aims to ease cash flow pressures for borrowers. Furthermore, recipients are required to allocate at least 60% of the loan towards the purchase of essential equipment or machinery, thereby directly supporting modernization and productivity improvements.
Facilitating Innovation and Expansion
Dr. Lowe highlighted the program’s potential to unlock new opportunities, noting the creative industry as an “underserved part of our economy with tremendous opportunity” and pointing to “a huge opportunity for health tourism” as a key growth area for Jamaica. The ORBIT facility also allows for loan fee financing, where upfront costs can be rolled into the loan, and offers optional technical assistance, such as the Energy Audit Grant, to help businesses improve efficiency and reduce operational costs. To qualify, businesses must operate within one of the four priority sectors, have annual revenues below J$425 million, and demonstrate a clear potential for expansion into new markets or replication of their business model. Businesses will access these loans through a network of DBJ-approved financial institutions, including Jamaica National (JN), Jamaica Money Market Brokers (JMMB), National Commercial Bank (NCB), and First Global Bank.
A Catalyst for Economic Transformation
The launch of the ORBIT program represents a significant step in the DBJ’s mission to drive sustainable economic growth in Jamaica. By providing accessible, affordable, and robust financial support, the initiative is poised to enhance the competitiveness of Jamaican MSMEs, foster job creation, and stimulate export growth. This news is a positive development for the business landscape in Jamaica, signaling a commitment to building resilient enterprises ready to compete on both domestic and international stages. The program’s design, which actively breaks down traditional financing barriers, underscores a forward-thinking approach to economic development and entrepreneurship in the island nation.