Frequently Asked Questions

• What criteria does the Bank use in deciding that a project is worthy of funding?
• What are some of the advantages that BDB funding provide?
• What is the interest rate offered on the Bank's funded loans?
• What is the application procedure/process?
• What can the Bank funds provide?
• What sectors does the Bank provide funding to?

What criteria does the Bank use in deciding that a project is worthy of funding?

The criteria used is as follows:

• Project must have significant Bahamian ownership/participation.
• Project must have Bahamian value added content.
• Project must expand small business base, create employment, conserve foreign exchange and/or favourably impact balance of payments.
• Project must be economically viable and demonstrate potential to meet operational obligations and service its debt.
• Prospect/client  must contribute acceptable equity.
• Prospect/client  must provide accep-table collateral.

What are some of the advantages that BDB funding provide?

Some of the advantages include:

1. Long term financing of up to 20 years inclusive of up to 6 months moratorium on principal repayment.
2. Interest payments are calculated on the reducing balance. There are no hidden charges.
3. Liberal debt/equity. The ratio requirement is as low as 10%.
4. Technical Assistance at no cost to BDB funded projects through BAIC.
5. Financing is available for legitimate cost overruns.

What is the interest rate offered on the Bank's funded loans?

The current interest rates is 7.25% on all new loans.

What is the application procedure/process like?

The application process entails:

1. Preparing project document
2. Submitting the project document to the Bank by completing application document.
3. The Bank evaluates the application
4. Application is submitted to Credit Committee and/or the Board of Directors for approval as appropriate.
5. On approval, a Letter of Commitment is issued on behalf of the project.
6. Applicant indicates acceptance of loan terms and conditions and pays the requisite fees.
7. The Bank disburses funds to the borrower's suppliers.

What can the Bank's funds be used for?

The Bank's funds can be used for:

• Construction, expansion and/or modification of structures
• Purchases of moveable fixed assets for example machinery and equipment, new and used.
• Provision of permanent working capital as part of the project being considered.
• Rehabilitation of existing enterprises.

What sectors does the Bank provide funding to?

The Bank provides project funing for:

• Agriculture
• Fishing
• Transportation
• Tourism
• Manufacturing
• Services

Additional Information

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