COVID-19 Webinars: Supporting Businesses in a Time of Crisis | Webinar #3

Ministry of Commerce, Planning & Infrastructure

Cayman Islands Centre for Business Development

Presentation Outline • Introduction to CICBD – Mandate – Overarching Goal – Operational Structure

• CIG MSME Relief Measures • Roles and Relationships (CIDB/CICBD)

To improve and prove the economic value of small businesses in the Cayman Islands - Our overarching goal‌‌..

Operational Structure CICBD Director

Residential Incubator

Programme Coordinator

Non-Residential Business Development Services

Senior Advisor

Advisor

What gaps will the Centre attempt to fill?

•

• • • • •

Management/decision making/ governance/strategic skills Financial Literacy Financial Management Market Access Access to funding Disaster/Risk Management

• •

• • •

MSME Stimulus package Collection and Collation of specific industry data Feed data in to government for the stimulation of new industries Facilitate an internship programme that can be utilized by universities in a win-win relationship Provide government with research findings to inform incentives and protections that will stimulate MSME growth

CICBD and Sustainability – 3 Strategic Pillars Institutional learning and Growth Strengthening the Entrepreneurial Ecosystem Enterprise Development

• A Network of support Business Support Organizations

University Internship Programme

E-Clubs in Schools

CICBD

Mentors

Special Advisors (subject matter experts)

Professional Consortium (On hire as needed)

How will we measure success?

• OUTPUT (MEANS) ▪ ▪ ▪ ▪

# of Persons trained # of Workshops held # of Clients counseled # of Counseling hours

OUTCOME (END) ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

#Jobs created/retained #New Businesses started New financing obtained Value of capital accessed Change in Sales Change in Revenue # of New Contracts Value of contracts # of New Products to Market New Markets entered

Cayman Islands Government

MSME RELIEF MEASURES

What the Programme is NOT: • A Stimulus Package • A one-time response • The Government’s comprehensive response

FOUR ELEMENTS • Low Interest Loan Programme • Technical Assistance Programme • Micro and Small Business Grant Programme • Training and Hand-Holding Programme

SUMMARY OF LOAN PROGRAMME • CI$5m facility – through CIDB • 1 % interest in first year; subject to increase to a maximum of 4% thereafter • Government backed guarantee • Max. CI$20,000– micro businesses; – Max CI$50,000 – small businesses

• 6 months moratorium on principal and interest

LOAN SUMMARY Cont’d) • Loans repayable over 5 years • Loan allows for 80% financing • Primarily Non-traditional security – Registered Debenture over the company’s assets supported by registered liens and collateral bill of sale – Assignment of good quality receivables (to be determined on a case by case basis) inclusive of contracts – Guarantor – Must have a verified Tangible Net Worth of 125% of the loan amount in the event they are called upon to repay the debt.

– Assignment of shares, deposits or universal life insurance policies.

SUMMARY OF GRANT PROGRAMME • CI$9m through CICBD • To benefit businesses (i) with a domestic market (ii) demonstrated ability to pivot to a domestic market • $1,000 per month for three (3) months • Payments to Third Party • 3,000 businesses to be assisted • Working Capital Assistance

Technical Assistance Summary

• Firms/individuals (CIIPA members) • To provide financial management/strategic assistance to Micro and small businesses • Write Business Plans/Prepare financial statements; Coaching • Assistance is over 12 months • Each Micro/Small Business assigned 20 hours • Quality Control mechanisms in place to ensure expected standards are met • Accessed only through the Loan Programme

Training - Summary • Mandatory Training for all beneficiaries of loan/grant programmes – One session – Programme Orientation – Four Other Trainings – Based on Gaps Identified • • • •

Business Model Innovation Managing Cash Flow in a Crisis Harnessing the entrepreneurial mindset Managing Changing HR needs

Programme Interconnectivity

Training Programme

Technical Assistance Programme

Loan Programme

How Do I Apply?

• Loans – loan.cicbd@gov.ky – (Applications will open next week)

• Grants – grant.cicbd@gov.ky – (Applications already open)

• Training Sessions – CICBD@gov.ky - Subject - TRAINING

LOAN - PROCESS FLOW

• Application/ Technical Assistance

CICBD

CIDB • Review/Due Diligence

CICBD • Loan Disbursement

CIDB

Loan Monitoring Business Monitoring

GRANT - PROCESS FLOW CICBD Business Monitoring

Disbursement Due Diligence

Application

Cayman Islands Centre for Business Development