Guyana Fire, Life and General Insurance (GuyFlag), the managers for the Linden Economic Advancement Fund(LEAF) says the company is awaiting approval of the fund's business plan.
The fund is a credit facility to stimulate employment in Region Ten and would help to fulfill the $2.2 billion Linden Economic Advancement Programme's (LEAP) target of creating 1,800 jobs by 2009. Guyflag has been chosen to manage the 1.9 million Euro fund and is responsible for any risks the fund incurs as well as having the power to approve or refuse an application for resources.
Dr. Fred Sukdeo, of GuyFlag noted that his company is awaiting the approval of the business plan which should be ready in less than a month.
A sum of 600,000 euros has been set aside for micro loans and 1.3 million euros for loans to small and medium- sized businesses. Businesses with up to five employees are classified as micro businesses; five to 12 employees as small; and over 12 employees as medium-size.
Sukdeo says the business plan has to go through various stages with several stakeholders involved, but implementation is expected toward the end of this year. He declined to reveal further details before the fund gets underway.
According to a LEAP document, a LEAP advisory group will monitor the management, operations and lending of the fund.
Start-up small businesses which receive money from the fund will also have an opportunity to be housed in the Business Incubator to be located at the Guyana National Engineering Corporation(GNEC) building, at Republic Avenue, Linden. The GNEC building is being rehabilitated at a cost of $40M. In a recent interview Ray Charles, LEAP's business incubator manager noted that the rehabilitation of the unit is expected to be complete by December 10. The opening of the building will follow after the building is furnished and the information technology systems are in place. The business incubator was first scheduled to open in February and then in September.
Tjeerd Ossewaarde, a credit adviser at LEAP, says according to the fund-management contract, they are to begin implementing the fund by November 1. It is expected to make a small profit by its third year, says Ossewaarde.
Applicants have to apply to LEAF's office which will be located at Republic Avenue, in GuyFlag's building currently under construction. Stabroek Business understands that LEAF's office is expected to be complete by November 1.
Ossewaarde encourages small business owners in Region Ten to have their business and market plans ready.