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What is the Credit Enhancement Facility?

The CREDIT ENHANCEMENT FACILITY (CEF) is a partial cash-backed guarantee to your bank for business loans made to Micro, Small and Medium-sized Enterprises (MSME).  It is a risk-sharing tool designed to:

  • Improve access to finance by MSMEs
  • Allows viable MSMEs to access credit for expansion
  • Supplements available collateral to meet the banker’s lending requirements
  • Reduces the risk of lending to MSMEs

This arrangement is facilitated by contractual agreements between the DBJ and several financial institutions and does not require the direct involvement of the sub-borrower.


The CEF guarantee Amount & Percentage coverage are:

  • General MSME loans – 80% of the loan up to a maximum of J$30 million
  • Small loans of J$11.11 million or less – 90% of loan up to a maximum of J$10 million
  • Start-up businesses in operation up to 24 months also benefit
  • Guarantees have a maximum term of 10 years