Business Loan Guarantee Programme
The Business Development Company (BDC) Ltd. offers a Loan Guarantee Programme to assist businesses in securing loans from lending agencies. By providing part of the collateral necessary to secure a loan, the BDC aims to remove a major constraint to obtaining finances for business establishment and expansion.
What are the eligibility requirements?
For-profit businesses that are owned and operated by citizens or residents of Trinidad and Tobago and involved in legitimate productive business activity, qualify to participate in the Loan Guarantee Programme. For the purposes of this Programme, a business is defined as a sole trader/proprietor, partnership, franchise, cooperative or limited liability company.
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What is the application process?
First, an entity should review all available loan options and select a lending agency. Then, the entity must provide that selected lending agency with a business plan and other supporting documents to strengthen the loan application, including contracts, past financials, lease agreements and customer listings.
The selected lending agency must complete the BDC's "Loan Guarantee Application" form and forward it, together with the entity's business plan and supporting documents, to the BDC.
The BDC will determine if the level of risk associated with the entity's application is acceptable. The BDC will issue a Loan Guarantee to the successful applicant's lending agency within ten business days of receiving the completed application form. The lender notifies the client that the guarantee has been accepted by the BDC, which is evidenced by the disbursement of the loan.
The lending agency has six months from the date the BDC issues the Loan Guarantee to disburse the loan, or the Loan Guarantee lapses.
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Where can the form be obtained?
Lending agencies and other financial institutions have already been provided copies of BDC's "Loan Guarantee Application" form. The form can also be obtained from the following BDC office locations. BDC offices are open Monday through Friday, from 8:00 am to 4:00 pm, except public holidays:
Head Office
151B Charlotte Street
Port of Spain
Trinidad, West Indies
Tel. (868) 623-5507
Fax. (868) 624-3919/625-8126
Email: info@bdc.co.tt
South Office
Shop 1, Ground Floor
Carlton House Extension
Carlton Centre
63 St. James Street
San Fernando
Trinidad, West Indies
Tel. (868) 652-3973/8779
Fax. (868) 657-4613
Email: bdcsdo@bdc.co.tt
Tobago Office
E-Teck Mall, Sangster's Hill
Scarborough
Tobago, West Indies
Tel. (868) 639-4067/2549
Fax. (868) 639-4340
Email: bdctgo@bdc.co.tt
Business Development Company Office Locations
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Are there any associated fees?
If the BDC issues a loan guarantee on behalf of an entity, that entity must pay a one-time payment equivalent to five percent of the guaranteed value contributed by the BDC toward the loan.
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Where can more information be obtained?
More information about the Loan Guarantee Programme can be obtained from the BDC's website by following the link below, or by using the contact information provided above. Information is also available at all commercial banks, including the Agricultural Development Bank (ADB), and selected credit unions.
The Business Development Company (BDC) Ltd. offers many more programmes and services aimed at enhancing the growth and competitiveness of local enterprises. For more information, visit the BDC's website.
Business Development Company
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