Finance Minister Colm Imbert said the government will fund a new long-term loan guarantee scheme for small and medium enterprises.

Speaking during the budget presentation for 2023 on Monday, Imbert said the project will be managed by First Citizens Bank, in collaboration with other commercial banks.

“We are funding $500 million in partnership with commercial banks, a new long-term loan guarantee scheme for SMEs. The government guarantee will be up to 80 per cent of the value of the loans for up to ten years, inclusive of a two-year moratorium on repayments, and will focus on the non-energy sector.”

He said this will be in addition to a number of facilities put in place by government, including the gateway to trade programme, the export booster initiative, the grant fund facility in eight designated sectors, and the SME mentorship programme.

A full tax holiday will be granted for the first six years, business levy and green fund levy, and a 50 per cent reduction in taxes for the next five years.

He said government will expand the forex facility for manufacturers through the Exim Bank.

“One hundred and 36 manufacturers, with 118, or 34 per cent of these, falling into the SME categories, have accessed a total of US$395 million under the Exim Bank forex manufacturing facility. Eighty-seven importers will have access to a total of US$488 million to supply the nation with food, sanitary products, pharmaceuticals, PPE, and other essential supplies, through the essential supplies forex window.”

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