The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) is intensifying its efforts to support small businesses across the region through an innovative guarantee program that helps entrepreneurs access bank financing.
Launched in 2019, the ECPCGC operates across six Eastern Caribbean countries, working as a bridge between small businesses and financial institutions.
The Corporation acts as a guarantor, pledging up to 80% of the required collateral for business loans, helping entrepreneurs who might otherwise be unable to access traditional bank financing.
On top of this support, they also provide as much as $2,000 for businesses to get professional financial aid to organize their financial documentation to ensure they can be approved for assistance.
“Many business owners have the vision and capability but lack the security requirements that banks demand. We step in to provide that guarantee to the banks on their behalf,” explained the ECPCGC CEO, Carmen Gomez-Trigg.
The ECPCGC emerged from a collaborative effort among Eastern Caribbean nations to address the persistent challenge of small business financing in the region.
It was formally launched in April 2018, operating under the umbrella of the Eastern Caribbean Central Bank (ECCB) with further regulation from the World Bank.
Its establishment involved a unique funding structure, with the six participating governments — St Lucia, Grenada, St Vincent, St Kitts, Antigua and Barbuda, and Dominica — each investing US$2 million into the Corporation. Five of these governments secured their investment funds through World Bank loans.
The ECPCGC recently introduced a new programme specifically targeting micro, small and medium enterprises (MSMEs) dubbed the MSME Growth Guarantee.
This latest offering allows businesses to access loans of up to EC$50,000 from local banks, with zero collateral requirements and the ECPCGC acting as a guarantor.
“The idea of guarantees is not a popular idea in the region,” the CEO noted, pointing out that similar programs in Trinidad, Jamaica and Barbados have either failed or had to be revamped after initial setbacks.
Notably, the program includes provisions for businesses to receive additional funds (EC$1,500 to $2,000) specifically for acquiring proper financial documentation and accounting services.
Unlike traditional financial institutions, the ECPCGC takes a hands-on approach in understanding the diverse business landscape it serves, noting that many get rejected for reasons that can be rectified with a more hands on, supportive approach.
“We educate ourselves so much about things like solar and about retail trade and agro-processing and about the boat going from Dominica to Antigua,” Gomez Trigg explained. “Because if you don’t learn, you cannot help your clients.”
Since its inception, the Corporation has approved over 160 guarantees across the region, with Grenada, St. Vincent, and St Lucia showing the highest participation rates.
In an effort to not require future injections of revenue from the participating governments, the ECPCGC generates revenue through two main streams: investments in regional securities and a 1.5% fee on guaranteed amounts.
This fee structure helps ensure the program’s sustainability while keeping costs manageable for small businesses.
The ECPCGC is also developing specialized programs for seasonal businesses and the gig economy, particularly targeting events-based enterprises such as caterers and event promoters.
Small business owners interested in the program can reach out to the ECPCGC via WhatsApp at 1-869-662-8989 or email at [email protected] for virtual consultations and further information about their guarantee programs.
