Agricultural Sector to receive EC $2 MIL
By Joyette Mills-Ward
Business Reporter-SKNVibes.com
Basseterre, St. Kitts – EC two million dollars in funding has been allocated to the Sugar Industry Diversification Agriculture Program aimed at assisting local famers and those interested in entering the industry.
SKNVibes.com spoke with Curt Lewis, Manager of the Projects Department at the Development Bank of St. Kitts & Nevis who informed that even though the funds were available, enough persons were not availing themselves of the opportunity.
“The money can be borrowed for agricultural purposes; mainly crops, livestock and fishing or aquaculture. The interest rate on these loans is around 6%. In terms of collateral or security, that is left to the Bank’s discretion. But persons need to come in and find out the details because the money is definitely there,” Lewis said.
He indicated that the Bank would consider several factors upon which to base the lending decision including taking a bill of sale if the farmer uses the loan proceeds to acquire equipment and taking a ‘line’ on the borrower’s crops. ~~Adz:Right~~
“We could take a line on the borrower’s crops and one of the conditions is that the payment pattern must correspond with the cash-flow of the project. So in the case of sweet potatoes, because the farmer’s cash flow wouldn’t be realised until about the 6th month, that’s when the payments should start coming in. So it would more or less match the progress of the project. A similar procedure would be done with other crops and livestock,” he said.
Lewis revealed that the program was originally intended to offer concessionary financing to the specific target group of ex-St. Kitts Sugar Manufacturing Corporation (SSMC) workers and persons who had worked in the sugar industry. He said the Bank is prepared to work with the former SSMC workers to get the program going and to get individuals gainfully occupied.
Lewis however informed that school-leavers or persons with an ‘entrepreneurial spirit’ would be welcomed to apply for funding.
“The monies from the program are available to nationals of St. Kitts & Nevis so age is really not a factor. Once an interested individual comes in to us with a viable project or even an idea we have in house a Business Support Unit to assist applicants with putting together their business plans,” Lewis explained.
Lewis said that running the program effectively would take a collaborative effort and as such, the bank would be relying heavily upon the Ministry of Agriculture and Department of Agriculture in running the Diversification Program. Each entity, he explained, would play their respective roles in assessing the feasibility of the proposed ventures by providing support data and assistance when conducting the technical appraisal of the projects.
