Most Read Contributor in Cayman Islands, September 2016
The Cayman Islands Development Bank (CIDB) is now offering two
loan programmes – one tailored for persons who own small-
and/or medium-sized enterprises (SMEs) with proven track records
for at least two years; and the other for civil and public servants
who want to consolidate their high-interest rate debt.
'As a development bank, CIDB's primary role is to
provide financing that promotes and facilitates Cayman's
economic and social development', said the bank's CEO and
General Manager, Tracy Ebanks.
'This means that CIDB's lending guidelines are geared
toward clients such as SME owners, who need the capital but may
have some difficulty in obtaining it; as well as to civil and
public servants, as a segment of the population that CIDB wants to
Ms Ebanks also pointed out that CIDB's SME programme
complements those that are offered by commercial banks.
'For example, with the SME loans, CIDB can provide bridge
financing that ultimately can lead to increased business for
commercial banks', she said.
CIDB is regulated by the Cayman Islands Monetary Authority. Ms
Ebanks noted that the bank's mandate includes carefully
managing lending risks, and that prospective clients must meet the
bank's terms and conditions.
Minister of Financial Services Wayne Panton said he is very
pleased that Government's commitment and support to CIDB has
resulted in CIDB being able to return to its core function of a
development bank, which has allowed it to offer additional products
for businesses and individuals.
'These programmes have been structured in such a way as to
maximise the assistance we can give, while not imperilling the
bank's financial stability through bad decision making, as had
been the case under the previous administration', he said.
'CIDB's management team, supported by a new board and the
bank's credit committee, have done excellent work to enable
these new loan programmes, which enhance Government's already
For business owners, these initiatives include reductions in
licensing fees, duty costs, and the benefit of CUC duty reductions,
among others. For individuals, the ability to refinance high
interest loans enhances initiatives that support and encourage
personal financial stability, such as the Managing Personal
Finances sessions that he and Minister Marco Archer launched in
'It is wonderful to be able to help our small-business
community succeed and prosper, but it is perhaps more gratifying to
be able to help at least some individuals who are struggling with
heavy debts', Minister Panton said.
'We have heard many people tell their stories about how they
landed in hardships, and they are as difficult to hear as they are
to tell. What these stories very clearly point out is the
need for lending institutions to offer affordable rates where
possible, and the need to teach and encourage prudent money
management across socioeconomic and age levels', he said.
Ms Ebanks encouraged persons who are interested in either of
these loans programmes to call 949-7511 and book appointments with
bank staff, as walk-ins will not be accepted.
Specific terms and conditions of the programmes are as follows.
SME Loan Programme
Maximum loan amount
10% (during interest only, if applicable)
1-year term, interest only; thereafter, repayable via bullet
payment at the end of the year (refinancing) OR blended monthly
payments, with maximum 7-year amortisation on loan amounts more
than $85,000 loans under 5 year amortization @ 8%
EBITDA 1.25% cover
Loan application fee
1.5% of loan amount
Dependent on type and loan usage (e.g., real estate 85% LTV;
margins against receivables/inventory/stock)
2 years in operation, with proven track record;
business must be 100% Caymanian owned
Depending on the type of business, special covenants may
Civil and Public Servants Loan Programme
Maximum loan amount
Maximum 6 years (Example: $20K @ 10% for
6 years = $370 monthly payment)
Not to exceed 50%
Loan application fee
Direct loan deposit
Employer remits monthly loan payment directly to CIDB
Unsecured. In the event the existing loan for payout is secured,
the CIDB reserves the right to hold the security
Full-time pensionable employee; loan term cannot exceed
Basic application requirements
Current job letter with pay slip attached
2 forms of valid identification
1 utility bill confirming address
No money down
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