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 750,000.00 (Classic Guarantee). Limits for the other guarantee products are set out on the product sheet.
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 equity of between 0 and 25 percent in the project to be funded by the loan, depending on the product.
There shall be a debt service coverage ratio of 1.25:1 for the Classic Guarantee and 1.10:1 for all other products. A ratio of 1.25:1 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.
