Small Farmers and Business Bank issues first loans
Last week the People’s United Party gave itself high marks for its first one hundred days of government. Today more words in the manifesto were put into action with the first disbursements from the recently reinstated Small Farmers and Business Bank. Stewart Krohn was on hand for the ceremonies in Belmopan.
The lobby was crowded with prospective customers and loan officers were busy processing stacks of applications. After being in business for only three weeks the Small Farmers and Business Bank was clearly large with the borrowing public. Two clients, a farmer from Santa Familia and a seamstress from Hattieville were the first to actually receive their loans: three thousand dollars each to get their businesses off the ground.
Deborah Myvett, Loan Recipient
“I am glad for this bank and I am sorry that they closed it down when they did the first time because it is a very good thing, I think.
Manuel August, Loan Recipient
“The first thing I’m going to do is start to work; from tomorrow I’m starting to work. Start to buy my fertilizer and buy things to work, you know.”
And hard work seemed to be the philosophy of the new institution. Lest anyone get the impression that money was being given away with no strings attached, Manager Tom Canto stressed that while the interest rates are low and the repayment terms feasible, this was above all a bank with all the obligations that the name implies.
Tom Canto, Bank Manager
“This bank will be run like any other bank; we are here to do business and actually here to protect the shareholders. Every loan that comes into this branch here, we will analyze the loan, we will investigate the individual, look at their character reference in particular their ability to pay. If that person has payability we would assist them in granting them a loan.”
The initial funding for the bank comes from a sixteen million dollar soft loan from Taiwan, but each borrower must also buy shares in the bank — 20 dollars worth for every thousand dollars borrowed — so eventually the bank will be owed largely by its customers. It’s the kind of relationship, says Minister of Economic Development Ralph Fonseca, that will lead to an important partnership.
Ralph Fonseca, Minister of Economic Development
“Our government is demonstrating to the Belizean people that we have confidence in their ability to produce and also in their understanding that they must be responsible to repay their loans.”
Q: “Bottom line, is this a bank for P.U.P.s or a bank for everybody?”
Ralph Fonseca
“It is a bank for everyone; you don’t see anybody asking whether you are P.U.P. or you are U.D.P. As a matter of fact the two people that we disbursed those checks to this morning we don’t know what there affiliations are; no body asked what it is. What is important is that they are Belizeans that are willing to get up early in the morning to work and they’re not going to go to sleep at night until they have done the work that’s necessary in order to meet their obligations and provide a better way of life for their people.”
And if that better way of life becomes a reality for folks like Deborah Myvett and Manuel August then the impact of the Small Business Bank should be anything but small. Stewart Krohn for News Five.
According to manager Tom Canto, over a hundred loans have been approved with the average running between three thousand and five thousand dollars. Annual interest rates are around ten percent with repayment schedules ranging from two years for small loans to up to ten years for larger loans up to fifty thousand dollars. The bank is located on Constitution Drive in Belmopan.
