BUSINESS MONDAY - Funding help

MINISTER of Small Business, Entrepreneurship and Commerce, Dwight Sutherland has promised to find alternative ways of financing for small business development in the wake of the difficulties in accessing commercial bank funding.

In fact, the minister said avenues are being sought out to enlist businesses on the stock exchange and to empower credit unions to do just this.

Speaking to the Business Monday at the Lloyd Erskine Sandiford Centre, he said it is “surprising” small businesses are having difficulties accessing capital as banks here have “cash available in abundance”.

“What is surprising to us is with all the liquidity within the banking system, what is fundamental is that what has retarded the growth of small businesses in this country is access to capital,” he said.

Admitting there are stringent regulations with these financial institutions, he revealed other solutions to commercial banks are being sought out for the micro, small and medium enterprises sector.

“I am hoping for the day, and will do whatever I can as part of a government leading the charge for small businesses, to have businesses enlisted on the stock exchange in this country, and I think we have to empower credit unions more in this country.

“I am not…telling the banks how to run their business, but what we as a government have to do is find other avenues whereby businesses can have access to capital, and we can have that through the credit union or by enlisting some of our companies in the stock exchange, whereby persons can buy shares and we can attract venture capital,” he said.

Last week, Minister of Transport Dr. William Duguid expressed concern over new charges one local bank is proposing on deposits.

Saying he would comment further on the matter upon getting more information, Sutherland nevertheless expressed puzzlement at such a decision.

“The bank charges are more than what you get on your savings and that band has increased, so you are getting less interest on your savings, but you are getting greater interest on your borrowings, so that speaks to the bank taking in more money, but you are not benefiting from putting your cash in the bank,” he asserted. (JMB)