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In 2009, the DBJ pioneered the Credit Enhancement Facility (CEF), a partial cash-backed guarantee that helps Micro, Small and Medium-sized Enterprises (MSME) without adequate collateral to access loans from financial institutions. The CEF is a risk-sharing arrangement under which the DBJ provides partial guarantees to financial institutions and, in effect, increase lending to MSMEs. It is a risk-sharing tool designed to:
• Improve access to finance by MSMEs
• Allows viable MSMEs to access credit for expansion
• Supplements available collateral to meet the banker’s lending requirements
• Reduces the risk of lending to MSMEs
This arrangement is facilitated by contractual agreements between the DBJ and several financial institutions and does not require the direct involvement of the sub-borrower.
The CEF guarantee Amount & Percentage coverage are:
• General MSME loans - 80% of the loan up to a maximum of J$30 Million
• Small loans of J$11.11 Million or less - 90% of the loan up to a maximum of J$10 Million
• Start-up businesses in operation up to 24 months also benefit
• Guarantees have a maximum term of 10 years

The purposes the CEF supports:
• Construction of structures (for productive purposes)
• Establishment of crops and livestock enterprises
• Expansion or modification of structures
• Purchase of machinery and equipment
• Purchase of moveable fixed assets
• Permanent working capital
• Rehabilitation of existing enterprises
• Energy conservation and renewable energy
• Tourist attraction and wellness projects
• Working capital &/or fixed asset purchases for enterprises involved in value-added activities
• Farming Activities

DBJ Credit Enhancement Facility (CEF)



MSMEs must:
• Be earning less than J$425 Million in gross annual sales
• Provide an Equity Injection of 10% to receive CEF coverage
• Be registered as a sole trader, partnership, limited liability company or with the Rural Agricultural Development Authority (RADA)
• Have access to a valid Tax Compliant Letter (TCL)
• Be operating in Traditional or Emergency Sectors which include but are not limited to Tourism, Agriculture, Agro-Processing, Manufacturing, Mining, Energy Efficiency and Alternate Energy Solutions, Services, ICT, BPO, Creative Industries and Retail and Distribution.
• Be operating legally and in an environmentally-sound manner
• Be socially responsible
• Contribute to the local economy through Job Creation, Foreign Exchange Earnings, Promoting Linkages, Assisting the development of new industries and Compliance with social and environmental regulations

MSMEs must NOT be involved in:
• Production or trade in weapons and munitions
• Violation of fair labour rights
• Illegal activity under Jamaica’s laws or regulations or participating international conventions and agreements
• Production or trade in alcoholic beverages (excluding beer and wine)
• Production or trade in tobacco
• Gambling, casinos and equivalent enterprises
• Production or trade in radioactive materials, not including medical equipment
• Production or trade in un-bonded asbestos fibres with asbestos content more than 20%
• Drift net fishing in the marine environment using nets in excess of 2.5 km in length
• Production or activities involving harmful or exploitative forms of forced labour/harmful child labour
• Commercial logging operations for use in primary tropical moist forest
• Production or trade in wood or other forestry products other than sustainably managed forests

MSMEs must not be involved in projects that are:
• Likely to have significant adverse environmental impacts
• Illegal under Jamaica country laws, regulations or ratified international conventions & agreements
• Involves solely refinancing of debt
• Real estate
• Purchase of land for residential development & use

The CEF is not suitable for:
• Revolving lines of credit
• Foreign Exchange currency loans
• Residential Housing Development Projects

Documents Required


Application Process

With the recent upgrades, CEF applications from your bank are automatic and are done in real time. No need to wait in line for a response. With our newly installed customized Management Information System (MIS) all applications are faster, easier, real time and online. Same-day approval may be facilitated subject to all necessary documentation being received by your bank and submission of your approved application sent to the DBJ.
• Go to your preferred bank.
• Talk to your business banker at the branch.
• Provide all the requested documents.
• Discuss your ability to repay.
• The bank will review the application based on their credit adjudication policies.
• The bank will appraise the project proposal.
• The bank is responsible for assessing the application and may approve or decline based on its credit adjudication policies.
• If the proposal is seen as favourable, it will be approved and a recommendation will be made to DBJ.
• Your banker may determine that a DBJ loan may not be suitable for you and support you in other ways. However, you can still benefit from the security of a DBJ guarantee.
• Approval from DBJ

Other Information

Some projects that the MSME is involved may require approvals from the National Environment and Planning Agency (NEPA) and Parish Councils.

An annual fee of 2% plus GCT is payable on the amount guaranteed.

The collateral requirements are determined by the Approved Financial Institution (AFI) facilitating the on-lending and carrying the loan risk.

The CEF will not increase the interest rate on the loan.

Development Bank of Jamaica

The Development Bank of Jamaica provides opportunities to all Jamaicans to make a positive impact on their own quality of life. They do this through providing development financing, capacity building, public-private partnership and privatisation solutions, which are in line with Government policy and future goals.

Development Bank of Jamaica

11A - 15 Oxford Road Kingston 5, Jamaica W.I

Phone Number: (876) 929-4000; (876) 619-4000

Fax Number: (876) 929-6055






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