Belize Enterprise Revolving Fund

OBJECTIVES
The Belize Enterprise Revolving Fund (BERF) seeks to establish an inclusive financial mechanism that will grant a specific subset of Micro Small and Medium Enterprises (MSMEs) the opportunity to access a combination of grant and loan funding with concessionary interest rates and appropriate loan terms. Selected MSMEs will also receive capacity building for business growth and business development.

Specific objectives:
  • Increase MSMEs viability and competitiveness.
  • Promote product and market diversification to increase local MSMEs access to new markets: domestically, regionally and internationally, or to expand in existing markets;
  • Encourage or increase innovative entrepreneurial and enterprise activities
  • Foster an environment that facilitates credit access for MSMEs.

 BENEFITS
Main benefits will include the following:
  • Interest rate ranging from (3% to 6%).
  • Grace period ranging from 1 month to 24 months, depending on investment and cash flow level of MSME
  • Loan term of up to five (5) years, depending on investment and cash flows level of the MSE
  • Loan to grant ratio based on the readiness stage of the beneficiary; however, credit can be between 50% to 90% of the total, while grants can oscillate between 10% to 50% of the total.
  • Personalized business advising
  • Customize Business Training
  • Financing based on Free Cash Flow to align with the operating, liquidity levels.
  • Financing of short to medium term investments.  

Target Groups
  1. Disadvantage & Vulnerable Groups (including Women and Youths):  start-ups operating less than (3) years and have a clear innovative business models and operated by persons within vulnerable groups such as women, indigenous, and youths at risk.
  2. Maturing Enterprises: Operating for more than three (3) years with slow but steady growth and have an innovative business model.
  3. Exporters, including Near-Export, or Export-ready Enterprises: demonstrate scalability potential, ability to improve capabilities and capacities for business competitiveness and to penetrate new or existing markets. 

ELIGIBILITY CRITERIA

01. ​Disadvantage & Vulnerable Groups (including Women and Youths):

The following criteria will determine the applicant’s eligibility:
  • Belizean Citizen/Residents, legal entities with Belizean majority shareholding
  •  Age 18 or older
  • Female headed initiatives, at- risk youth led, and indigenous persons
  • Operating less than 2 years
  • Value added potential, Innovation: Usage of new technology or existing technology, or simply innovates through processes.
  • Environmental and social sustainability – Activities do not pose any negative externalities to the environment.
  • Businesses engaged in sectors such as Aquaculture, Tourism, Light Manufacturing, Creative Industry,  Professional Service Provider, Agriculture and Agro-Processing.
  • Entrepreneurs/ business that have not engaged in illegal behavior, including Anti Money Laundry / Combating the Financing Terrorism activities.
  • Good Credit history, commercial background and good standing (if available).
Businesses engaged in the following areas will be prioritized:
  • Agriculture and Agro-processing                
  • Innovative ideas such as repurposing, upscaling, and recycling material,
  • Cluster Initiatives.
  • Creative Industry
  • Professional Service Provider 

02. Maturing Enterprise

The following criteria will determine the applicant’s eligibility:
  • Belizean Citizen/Residents, legal entities with Belizean Majority shareholding
  • Age 18 or older
  • Operation more than 3 years 
  • Value added potential, Innovation: Usage of new technology or existing technology, or simply innovates.
  • Environmental and social sustainability – Activities do not pose any negative externalities to the environment.
  • Businesses engaged in sectors such as Aquaculture, Tourism, Renewable Energy, BPO’s, Light Manufacturing, Creative Industry, Information Technology and Communication Services, Agriculture and Agro-Processing.
  • Business that have not engaged in illegal behavior, including Anti Money Laundry / Combating the Financing Terrorism activities.
  • Good Credit history, commercial background and good standing (if available.
 
Businesses engaged in the following areas will be prioritized:
  • Renewable Energy/ Energy Efficiency.
  • Climate mitigation/ adaptation.
  • Innovative ideas such as repurposing, upscaling, and recycling material,
  • Cluster Initiatives.
  • Creative Industry 

03. Exporters, including Near-Export, or Export-ready Enterprises: 

The following criteria will determine the applicant’s eligibility:
  • Belizean Citizen/Residents, legal entities with Belizean Majority shareholding
  • Age 18 or older
  • Operating more than three (3) years.
  • Value added potential, Innovation: Usage of new technology or existing technology, or simply innovates.
  • Environmental and social sustainability – Activities do not pose any negative externalities to the environment.
  • Mainly ideas or businesses within the Export/Trade/ Import Substitution Sector such as Aquaculture, Tourism, Renewable Energy, BPO’s, Light Manufacturing, Information Technology and Communication Services, Agriculture and Agro-Processing.
  • Entrepreneurs that have not engaged in illegal behavior, including Anti Money Laundry / Combating the Financing Terrorism activities.
  • Available Financial Statement
​
​Businesses engaged in the following areas will be prioritized:
  • Renewable Energy/ Energy Efficiency.
  • Climate mitigation/ adaptation.
  • Cluster Initiatives.
  • Cultural and Culinary Arts
  •  Building Competitiveness (HAACCP or ISO certification or other adaption of other standards or certification to foster trade opportunities and meet access requirements)

Micro, Small and Medium-sized Enterprise (MSMEs) definition:

Classification
Number of Employees
Annual Sales
Micro
Less than 5
Less than $100,000
Small
5 - 20
$100,000 - $500,000
Medium
21-51
$500,001 - $4,500,000

Funding

Maximum Amounts and Repayment Period

Category
Range (USD)
Maximum Payment Term (years)
Disadvantage & Vulnerable Groups
$1,000 - $5,000
3 - 4
Maturing Enterprises
$2,000 - $7,500
4 - 5
Exporters, including Near-Export, or Export-ready Enterprises
Up to $20,000
5 - 6

What does it fund?

Target groups 1 and 2 must incur expenses on the following activities:
  1. Advance prototypes and market validation efforts;
  2. Financing of Working Capital: Production wage, purchasing of essential raw material and production inputs, promotion and marketing of products and services for market expansion, diversification of existing products and services based on changing market conditions
  3. Enhancement of product/service in order access new markets. 
  4. Construction of facilities of the business infrastructure;
  5. Expenditures for the following validation activities:
    1. Promotion of the product/service within potential customers;
    2. Customer loyalty and retention; and
    3. Generation of referrals and viral growth of the customer base.
  6. Investment in productive assets: machines, equipment (including IT technology), tools, or other relevant assets. These expenditures are only eligible if they are needed for the commercial validation of the business and for its launch;
  7. Development of a high definition Minimum Viable Product (MVP) - a prototype with sufficient features to satisfy early consumers and acquire feedback on customer willingness to purchase and use the product/service.
  8. External services for design of marketing and sales campaigns, brand development, graphic design, virtual and industrial prototypes, packaging, samples, pilots, data mining, testing, and so forth;
  1. Prototypes: materials and supplies, spaces, samples, certifications and permits required
 
Target group 3 must relate its expenditures to these activities:
  1. Financing of Working Capital: Production wage, purchasing of essential raw material and production inputs, promotion and marketing of products and services for market expansion, diversification of existing products and services based on changing market conditions. 
  2. Equipment modernization, technology adoption or investment in productive assets
  3. Adoption of standards and/or technical requirements (Food safety standards)
  4. Certification or implementation of quality systems
  5. Research & Development and innovation aimed at feasibility assessments and market identification/ penetration.
  6. Product and service development
  7. Implementation of IT solutions (website, e-commerce)
  8. Market research and testing
  9. Packaging and design
  10. Protection of intellectual Property Rights (registration of trademarks, patents, etc)

What cannot be funded?

This list is for guidance only and is not exhaustive.
  1. Expenditures incurred before the date of approval of the funding;
  2. Payment of debts and taxes, except import taxes or environmental taxes.
  3. Buy shares or other financial investments;
  4. Any assets not directly related to the business;
  5. Salaries for the entrepreneurial/ business team members and the staff;
  6. Design, development, enhancement, or validation of business plan, sales plan, or financial plan.
  7. Personal expenses of the team; ​

Application Process

  1. Complete application 
  2. Pre-selection process.
  3. Debriefing Meeting with pre-selected applicants and preliminary training in preparation for the interview with the beneficiary committee.
  4.  Pre-Selected applicants prepare for interviews with the beneficiary committee.
  5. Beneficiary committee interviews pre-selected applicants and selects applicants that will receive the grant/loan and recommends loan/grant amount and percentage. 
  6. Successful applicants are notified via email/ phone upon completion of the interview.
  7. BELTRAIDE will assign an advisor to selected applicants. 

Loan Process

  1. The participant prepares, with BELTRAIDE assistance, the required credit documents such as loan/grant Application, revised investment plan, revised business model and basic cash flow and balance sheet.
  2. DFC credit officers evaluate credit documents and conduct risk analysis to verify the appropriate interest rate and payment period.
  3. DFC meets with beneficiaries to go over the terms and conditions and for loan agreement signature.
  4. Selected applicants complete an assessment to determine the training topics that will need to be taken in the course of the implementation of the investment plan and an assistance plan is developed based on the assessment.
  5. BELTRAIDE provides technical assistance and advisory services based on the assistance plan and the training topics during the implementation of the investment plan.

MonitorinG

  1. BELTRAIDE will monitor and advise recipients on implementation.
  2. Recipients will submit an intermediate report and a final report with receipts/invoices.
  3. Each advisor along with the client will complete a client growth assessment and project impact assessment report (Jobs Generated, new products, new markets, jobs retained and additional source of funds).