$1b already released to banks to kickstart business recovery, says DBJ
Published:Friday | December 5, 2025 | 12:12 AM
Managing director of the Development Bank of Jamaica (DBJ) Dr David Lowe says the first phase of the institution’s M5 Business Recovery Programme will be launched in the fourth quarter of the current financial year, between January and March 2026, supported by a $3-billion Cabinet-approved allocation.
Given the urgency of business-recovery needs, Lowe noted that the DBJ had already released $1 billion to commercial banks and microfinance institutions so that they could begin implementing elements of the programme immediately.
His comments came as lawmakers, during Wednesday’s meeting of the Public Administration and Appropriations Committee (PAAC), questioned whether funding for the initiative was included in the Third Supplementary Estimates of Expenditure. While no allocation appeared in the document, Permanent Secretary in the Ministry of Economic Growth and Infrastructure Development Arlene Williams clarified that Cabinet had approved the $3 billion “but not in time for it to have made its way into the supplementary estimates”.
Speaking with The Gleaner, Lowe explained that the M5 Business Recovery Programme is a $10-billion, three-year initiative to be rolled out in phases to support resilient reconstruction following business disruptions caused by Hurricane Melissa. The framework offers targeted financial support to eligible enterprises, including MSMEs, and was developed through consultations with its parent ministry, business groups, sector associations, and government partners.
He said the financial products under the programme are structured to address both immediate and longer-term needs. As of now, DBJ partner financial institutions can access the initial $1 billion to on-lend to their customers, and many microfinance institutions and commercial banks have already begun advising their business clients on eligibility and requirements.
Lowe confirmed that the funds available through partner institutions would be offered to beneficiaries at an interest rate of eight per cent. MSMEs may also qualify for collateral support of up to 80 per cent.
Quizzed on the demand for loans anticipated by the DBJ in the short to medium term to assist businesses to rebound, Lowe said the bank is driven by requests from the financial institutions.
“Based on preliminary discussions with the banks and microfinance institutions, we see significant need in some key sectors. We will continue to monitor take-up, but we’re making sure that we carve out as much as possible, with a priority towards MSMEs,” Lowe said.
The DBJ managing director also highlighted that the bank offers grants in collaboration with other development partners through specific capacity-building programmes.
“We are currently in discussions with these key international partners to make some available within the upcoming six-month period in the area of agriculture, specifically around climate-resilient projects,” he added.