Secondary- and tertiary-level graduates interested in starting a business can now access a $200-million loan facility made available by the Government under YEP.

The loan facility is aimed at ensuring that persons who demon-strate strong entrepreneurial spirit and drive benefit from training and access financing for viable projects.

Criteria

According to a release from the Jamaica Information Service, students must be recommended by their educational institutions and exhibit an interest in self-employment to be deemed eligible. They must also be willing to participate in a series of training seminars, to be conducted by the Jamaica Business Development Corporation, HEART Trust/NTA, Rural Agricultural Development Authority and 4-H Clubs, to help them manage their business before they receive any of the funds.

Graduates are also required to prepare a business plan and conceptualise an idea that is technically and financially viable, as well as demonstrate an ability to repay the loan. Young persons will present their respective business plans to a micro-finance institution of their choice for review.

Payment plan

Each successful loan recipient may obtain up to $100,000, or four persons in a group could access $400,000. Interest rates will be set at 10 per cent for the life of the loan, with a 12-month repayment period for individual loans, including a maximum six-month moratorium on the principal payment.

The programme was announced by Prime Minister Bruce Golding, during the 2009-2010 Budget Debate last month, as part of a $2.2-billion package to assist the small-business sector.