Frequently Asked Questions for the
SME Stimulus Loan Facility

o   The SME Loan by Loan Facility is a government-sponsored loan programme of up to TT$1,500,000 to help small and medium-sized businesses impacted by the COVID-19 pandemic, the adverse effects of the Russia-Ukraine war and supply chain challenges.

The Facility is open to small and medium-sized enterprises operating and incorporated in Trinidad and Tobago and in operation from March 1, 2021

 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$ 500,000 to TT$25 million
• BIR registration number
• A VAT registration number.

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 TTD 500,000 or more than TTD 25million annually.
• with loans in arrears 90 days or more
• who have applied already applied for an SME Support loan though a related company.
• owned or controlled by a person(s) holding public office. 

The business must confirm that the loan will be used solely for salary payments, working capital, purchase of raw materials and fixed assets purchases. Excluded: residential R/E and financial instruments and purchase of vehicles for personal use.

•  Business Registration documents.
• 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.
• Proof of BIR Registration or evidence that the process has started.
• Employee NIS contributions up to December 2021
• 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

o   Option 1 - Loans with terms up to 5 years, equal blended monthly payments of principal and interest.

o   Option 2 - Loans over 5 years will have an initial 24-month principal moratorium. Interest will be payable monthly from inception; however, principal will be repayable via equal monthly principal instalments following 24-month moratorium.

The rate will be determined by Administrative Agent and all banks will be advised quarterly. Please contact your Business Banking representative.

Yes. The Government of the Republic of Trinidad and Tobago will secure 80% of your loan balance. The borrower provides 20% security in the form of cash or real estate. Additionally, Scotiabank requires 100% Personal guarantees of the shareholders of the Borrower for 100% of facility.

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, 2021.
• 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 Scotiabank (T&T) Limited, First Citizens Limited, RBC Royal Bank (T&T) Ltd and Republic Bank Ltd.

The Facility is open for two years depending on demand by SME’s.

o   If you are interested in the SME Loan by Loan Guarantee Scheme Facility, please contact your Scotiabank Business Banking representative for more information.