With so much going on during the holiday season, the significance of a statement by Prime Minister Leona Romeo-Marlin in her New Year’s address should not go unnoticed. She revealed that government intends to launch a US $32 million Enterprise Recovery Project in 2019 to assist Hurricane Irma-impacted micro-, small- and medium-size businesses.
Her explanation was short on detail and specifics, but the four-year programme is to reach 300 enterprises in the first year and 600 in the last. It will arrange access to financing for asset replacement and working capital via financial institutions.
Qualifying candidates will receive a combination of grants and loans, although there is no word yet on the desired division between the two. It regards an important aspect, because conditions for borrowing from commercial banks in terms of collateral and other requirements are difficult for many to meet especially under their current, dire circumstances.
One thing seems obvious: Just asking for part of this money from the Dutch-sponsored Trust Fund managed by the World Bank probably won’t suffice. A proper business plan acceptable to the financiers on how the investment can improve results, enhance sustainability and safeguard jobs will probably be needed.
Nevertheless, the prime minister’s announcement has created new hope among struggling members of the local business community that at least some help could be on the way. People who object to assisting employers rather than personnel should think again, because when businesses are forced to close their doors it is usually the staff who suffer most.
The reality remains that the best way to promote prosperity is restoring the tourism economy. Making use of these kinds of opportunities to do so is key, but will demand solid preparation and doing the necessary homework.
As always, failure to plan is planning to fail.
