With access to financing continuing to challenge the sustainability of local micro and small enterprises and the emergence of new ones, the Small Business Bureau (SBB) earlier this week disclosed that it is preparing to make available thirty grants collectively valued at $15 million to such enterprises under its second quarter, 2019 grant allocation, with each grant averaging $500,000 each.
An advertisement from the Bureau published in the local media over last weekend stated that the objective of the exercise is to provide support to “approved small businesses” that are able to demonstrate “sustainable growth potential.”
The Bureau says that the funding available under the grant scheme is intended to be used under a specifically designated range of business activities or projects, its notice specifically listing equipment purchasing or modernisation, working capital, construction & fabrication work, marketing & promotional services, implementation of ICT solutions, product packaging, standards certification and research design & testing.
Access to SBB grant funding, the agency says, is contingent on businesses seeking such grants having their applications for registration approved. Chief Executive Officer of the SBB Dr. Lowell Porter had earlier told this newspaper that among the critical criteria for accessing its support is that businesses must be Guyana Revenue Authority and National Insurance Scheme–compliant.
Critically, the Bureau says that business owners seeking access to grant funding must also submit their business plans “which must include but not be limited to” information regarding details of the business opportunity, market research and target market, competitor analysis, marketing plan, breakdown of project cost, cash flow projections and SWOT Analysis. Evaluation of grant applications will also be based on the outcomes of site visits by Bureau officials and the evaluation of application for grants will be undertaken by a Grant Committee created from “outside the SBB.”
The SBB came into existence under the Small Business Act of 2004 and seeks to provide both financial and non-financial support to local small businesses in order to help improve their productivity and competitiveness. Its mandate also includes providing institutional support for organisations promoting small businesses. Apart from the provision of grants of up to $300,000 for small business support, the Bureau also plays a role in providing
collateral support for small businesses seeking commercial bank financing through agreements with designated local banks.
Up until now and despite a commitment to being in a state of readiness with effect from January 1 this year, notwithstanding, the SBB is yet to roll out its key incentive to stimulate accelerated small business interest, that is, the clause in the Small Business Act which sets aside up to 20% of state contracts valued at a ceiling of $30 million for allocation to small businesses. Widely regarded as a potentially significant game changer for local small business enterprises in several sectors, the provision cannot be activated without legislation which ensures that it is embedded in the country’s procurement laws.
