Frequently Asked Questions for the
SME Stimulus Loan Facility

The SME Stimulus Loan Facility is a government-sponsored loan programme of up to TT$300 million to help micro, small and medium-sized businesses impacted by the COVID-19 pandemic.

The Facility is open to micro, small and medium-sized enterprises operating and incorporated in Trinidad and Tobago and in operation as of March 1, 2020

To be eligible for the Facility, an SME is required to declare, amongst other things, that they are in possession of:

  • Annual Gross Revenues between TT$1 million to TT$20 million
  • Minimum of five (5) employees
  • Up-to-date BIR and VAT payments
  • Up-to-date NIB contributions
  • A VAT registration number, where applicable

SMEs:

  • with majority shareholder(s) that are non-nationals (not citizens or permanent residents of Trinidad and Tobago); or
  • with gross revenues of less than TTD1 million or more than TTD 20million, and/or less than (5) five employees are NOT eligible to apply for loans under this Facility, or
  •  With loans in arrears 90 days or more

The business must confirm that the loan will be used solely for salary payments, working capital and purchase of raw materials.

  • Up-to-date annual audited or management financial statements, to also be submitted annually within (60) days of each fiscal year-end during the life of the loan;
  • Semi-annual unaudited financial statements within (60) days of the semi-annual date;
  • Financial and operating statements as required by the lending institution;
  • Financial covenants that are customary for transactions of this nature;
  • Borrowers must be compliant with KYC requirements
Businesses are not required to make repayments for the first twenty-four (24) months but will have to repay the principal in (36) thirty-six equal monthly principal instalments thereafter. Government will pay all interest.
Yes, prepayment is allowed without penalty.
Government will pay all interest on the loan. There is no interest cost to the borrower.
Yes. The Government of the Republic of Trinidad and Tobago will secure 75% of your loan balance.

Each borrower may be responsible for providing collateral for the remaining 25% of the loan balance that is not secured by the Government, as required by the lending institution.

Owners/Shareholders of the borrower may also be required to provide personal guarantees for 50% of the loan.

In addition to meeting eligibility criteria, the SME must certify that:

  • It intends to continue to operate its business or to resume operations;
  • It generates revenues from the sales of goods and services;
  • It will not use the proceeds to repay other borrowings;
  • It will not use the proceeds to repay any Director/Shareholder Loans;
  • It will not use the proceeds to declare a Shareholder Dividend;
  • It will make best efforts to maintain employment of permanent staff as existed at March 1, 2020;
  • It is not owned or controlled by any shareholder or person who also owns or controls another SME that is already a borrower or has applied for a loan facility under the program;
  • Shareholders of the SME must also be willing to provide personal guarantees.

Loans will be available from First Citizens Limited, RBC Royal Bank (T&T) Ltd, Republic Bank Ltd and Scotiabank (T&T) Ltd.

The Facility is open until September 30, 2020.

If you are interested in the SME Stimulus Loan Facility, please contact your Scotiabank Business Banking Officer for more information.