Starting this month, micro, small, and medium enterprises (MSMEs) that are owned by, led by, or benefit women, youth, or persons with disabilities will have the opportunity to access low-interest loans with rates ranging from 0 to 2 percent. This initiative comes from a new partnership between the Bahamas Development Bank (BDB) and the United Nations Entity for Gender Equality and the Empowerment of Women Multi-Country Office – Caribbean (UN Women MCO Caribbean). The collaboration aims to offer concessional financing to support businesses in agriculture, sustainable tourism, and the creative industries.
UN Women, with financial backing from the Joint Sustainable Development Goals (SDG) Fund, will allocate 100,000 USD to support the low-cost loan initiative created by BDB.
Nicholas Higgs, BDB’s Managing Director, said, “By providing low-interest loans to MSMEs, we are empowering local businesses to thrive, innovate, and contribute significantly to our economy. This initiative not only supports economic growth but also promotes social inclusion by targeting underrepresented groups such as women, youth, and people living with disabilities. It is a pivotal step towards a more equitable and prosperous future for our nation. Loans are useful for business growth. This new product allows businesses to scale up production, improve products, stay competitive, enter new markets or take advantage of growth opportunities.”
Applications for loans will be accepted until September 13, 2024. This concessional financing offers businesses an interest rate between 0 and 2 percent for the initial two years. Any financing that extends beyond this two-year period or exceeds $100,000 will revert to the standard interest rates set by the Bahamas Development Bank. These loans are supported through blended financing, a strategy that combines public and development funds to reduce the interest rates on conventional loans provided by the BDB.
Tonni Brodber, Representative UN Women MCO Caribbean said, “For many businesses, access to loans can mean the difference between staying small or achieving significant growth, driving innovation and economic development in their communities. A major focus for this fund is supporting women and young entrepreneurs in overcoming existing financing gaps to support their full and equal economic and social participation. Recognizing that women are less likely to take out loans when compared to men, closing the gap between the need for financing and the access to financing is crucial for women entrepreneurs to overcome economic challenges, enhance their financial independence, and enable women to contribute to the overall economic development and job creation in The Bahamas.”
Since 2022, the Bahamas Development Bank (BDB) and UN Women have been working together on the “Building Back Equal through Innovative Financing for Gender Equality and Women’s Empowerment Programme.” Running until October 1, 2024, this initiative involves BDB, Bermuda’s Ministry of Youth, Social Development and Seniors, and four UN agencies: UN Women, UNESCO, FAO, and UNDP.