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Innovation

EGFL provides seed capital in the form of equity financing from $25,000 up to $250,000 to assist entrepreneurs with the implementation of innovative, sustainable and commercially viable project ideas.

EGFL accepts no more than 49% of the business’ value in the form of Cumulative Preference shares in exchange for the monetary investment in the company. An exit strategy forms part of the equity agreement whereby at the end of five (5) years, the shares are redeemed by the company at a predetermined price. Project ideas will be assessed according to the following criteria:

  • The business idea should be innovative and marketable with the potential to generate attractive returns.
  • The ability to generate sustainable employment must be an important feature of the project.
  • Projects must be majority-owned by residents of Barbados.
  • The potential to earn or save foreign exchange would be a definite asset.
  • A proposal would be viewed more favourably if it has a focus in one of the following sub-sectors;

(a) Information Technology
(b) Environment
(c) Culture, including music, arts and craft, film etc.
(d) Non-traditional agriculture.
(e) Tourism

Resources allocated to innovative projects may not be used to purchase land, land and buildings or finance real estate ventures except where the buildings are to be used for productive purposes. In such cases only the costs of erecting or renovating the buildings will be financed.

Documentary evidence of approvals, permits and consents associated with the execution of the project must be presented to EGFL prior to disbursement of funds.

To access funding, you should provide a business plan which clearly sets out:

  • An overview of the business.
  • Detailed information on the business’ financial structure and management team.
  • An assessment of the company’s ability to execute the exit strategy.
  • Current and or/most recent audited financial statements.
  • Marketing information including growth strategies for the next three to five years.
  • Financial projections supported by realistic assumptions demonstrating the project’s ability to be profitable.

A copy of the following corporate documents must also be provided:

  • Certificate of Incorporation
  • Notice of Address or Notice of Change of Address of the business’ registered office.
  • Notice of Directors or Notice of Change of Directors
  • Articles of Incorporation

On completion of the due diligence process, EGFL prepares and presents a Project Funding Memorandum for the review and approval of the Investment Committee. Prior to disbursement of approved funds, the applicant must provide documentary evidence that they are up to date with respect to NIS payments, VAT, PAYE, and other statutory obligations or that satisfactory arrangements have been made to clear any arrears.