EGFL provides financing to small hoteliers that are members of the Small Hotels of Barbados Inc. (SHBI). The financing is provided to enhance the financial viability and operational performance of the small hotel sector.
Loan financing is available from BDS$50,000 to BDS$5.6 million or 15% of the total capitalisation of the Fund, at a fixed interest rate of 5.0% per annum, calculated on a reducing balance basis. Loan terms can extend to fifteen (15) years.
- Resources may be used to upgrade, refurbish or construct new plant and acquire equipment, for facilities in the
accommodation sub-sector. - Loan proceeds shall not be used to purchase land, land and buildings, or other real estate except where the
buildings are to be used for productive purposes. In such cases, only the costs of erecting or renovating the
buildings, including financing costs, will be funded. - “Refinancing of existing debt will be limited to no more than 25% of the loan proceeds.
- Documentary evidence of approvals, permits and consents associated with the execution of the project must be
presented to EGFL prior to disbursement of funds. - Security is required, usually in the form of a legal charge over the assets which have been acquired with the
proceeds of the loan and any other collateral that may be deemed necessary.
In order to qualify for this financing, an applicant must:
- register with the Ministry of Tourism and BHTA;”
- submit a Business Plan
On receipt of the Business Plan, EGFL shall ensure that project proposal falls within the scope of the overall objectives of this financing and shall conduct due diligence with particular reference to the following:
- Project costs;
- Technical feasibility with reference to sectoral knowledge and skills;
- Management skills;
- Reputation of prospective client(s) in the market place;
- Credit worthiness of the prospective client(s) and the ability to service debt;
- Market analysis and prospects;
- Financial structure;
- Financial viability including profitability and balance sheet projections for five (5) years. For existing
businesses, audited financial statements for the three (3) years preceding the date of the application must be
provided; - Foreign exchange generation capacity;
- Sensitivity and risk management analysis;
- Environmental impact.
SEE BUSINESS PLAN GUIDELINES HERE
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 shall prepare and present a Project Funding Memorandum for the review and approval of the Investment Committee. Prior to disbursement, the applicant should show evidence of compliance with BRA and NIS, if applicable.
Technical Assistance
Technical assistance for small hotels is available for some professional services in project preparation, such as architectural services and interior design.
- Financing for small hotels was activated in 1999 with $5 million and commenced financing activities for group
marketing as well as the refurbishment of small hotel properties. - Funding is available to members of the Small Hotels of Barbados Inc. (SHBI) which trades under the brand, “Intimate
Hotels of Barbados”. - Funding is provided at 5.0% per annum, fixed up to $5.6 million.
- The Small Hotels Refurbishing Scheme (SHRS) commenced officially on April 1, 2005 with a stated objective to
refurbish and upgrade at least 400 hotel rooms in the small hotel sector to a minimum three-star quality standard
for the ICC Cricket World Cup 2007. - The SHRS, had a budget of $30 million; $28 million in the form of a loan and $2 million for technical assistance.
- By the end of the SHRS in February 2009, 14 hotels, comprising 439 rooms, were either upgraded or expanded with 13
properties achieving the minimum three-star quality standard. The funds allowed 313 rooms to be refurbished and 126
new rooms to be built. - $61.72 million has been approved from inception to December 31, 2023.
- $53.07 million in loans has been disbursed to December 31, 2023
- $3.59 million in grants has been disbursed to December 31, 2023.
Small Hotels Loan Calculator
*This is for illustrative purposes only.