Starting loans under the so-called 'LIVITY Economic Advance' plan are capped at $70,000, but applicants, if they maintain a good credit rating under the scheme, can more than double their borrowings over time.

The funds will be sold at 0.67 per cent per week or 35 per cent per year, says COK. Additional charges include a one per cent fee, plus GCT, calculated on the loan amount to be paid by the applicant.

The loans are unsecured but COK requires that the applicant has at least 10 per cent of the value of the funds borrowed in a share account with the credit union.

Loans are repayable within one year.

Field agent

AIR, founded and headed by Dr Henley Morgan, is headquartered in downtown Kingston. The agency will act as field agent, helping to identify potential candidates for loans, and offering technical assistance by assisting with business plans, but also monitoring borrowers to ensure that they service their loans.

The project will initially target Arnett Gardens, Trench Town, Craig Town, No Man's Land and Jones Town, but COK says it will be replicating across other low-income communities where self-employment is limited because of limited access to capital and jobs are scarce.

To qualify for credit under the programme, however, applicants must join the credit union, and can be no younger than 18 nor older than 65. Photo identification and proof of registration as a taxpayer are also required.

COK will be leaning heavily on the recommendations by AIR to determine whether applicants are an acceptable credit risk.

Applicants who develop a track record can have a second loan of $80,000 and a third of $150,000.

business@gleanerjm.com