The Participating Lender may provide the loan to the eligible borrower to carry out investment or activity for productive purposes (including working capital). The maximum loan amount is XCD 300,000.00. Qualifying loans for guarantee coverage include loans for expansion, growth and working capital. Credit Cards are not supported under this Agreement. A borrower must have a minimum of 25 percent equity in the project to be funded by the loan. There shall be a debt service coverage ratio of 1.25:1. This means that the MSME must have free cash flow that is equal to 125 percent of the monthly loan payment. There is no maximum interest rate prescribed by the ECPCGC.
