IIC Approves An Innovative Mechanism For Up To US$10 Million That Offers Small Loans To SMEs
05/15/2006Washington, D.C. - On May 16, 2006, the Inter-American Investment Corporation (IIC) approved the Small Business Revolving Line (SBRL), a financial product by which the IIC offers standardized small loans to eligible small enterprises under an expedited approval procedure. Ten million US dollars have been allocated for this mechanism.
Because access to financing on reasonable terms remains a challenge for most SMEs, the IIC continues its efforts to streamline procedures, improve efficiencies, and offer smaller loan sizes. The IIC hopes that the SBRL will enable it to attract borrowers likely to improve their credit risk profile, thus making them eligible for more sophisticated financing facilities. In addition, IIC expects that the SBRL will have a demonstration effect with other lenders. In an initial phase the program will be offered in Costa Rica, Honduras, Nicaragua, Paraguay, and Uruguay. The target companies include private companies engaged in agribusiness; manufacturing; wholesale; retail and services; construction and any other sector that contributes to the local economy.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: John Beckham/Steven Reed
Telephone: (202) 623-3984