This document provides information on the mission, objectives, products, and operations of JN Small Business Loans Ltd. (JNSBL). The mission is to provide innovative credit to micro and small entrepreneurs in Jamaica with limited banking access. Objectives include supporting microenterprise development and job creation. Products include microloans up to $1 million, Bizboost loans up to $3 million, and Tourism Enhancement Fund loans. Since 2000, JNSBL has expanded from 2,039 loans worth $37.9 million to over 11,000 loans worth $597.9 million, with 147 staff serving 26 locations across 6 regions of Jamaica. JNSBL aims to continue its growth and better serve clients through strategic initiatives

2. Mission Statement & Objectives
Mission Statement
To deliver innovative and accessible credit in a timely and
profitable manner to micro and small entrepreneurs in Jamaica
who have limited access to loans from traditional banking sources.
Objectives
– To support the development of the Jamaican micro-enterprise
sector
– To assist micro entrepreneurs to increase their income and
improve the quality of their lives.
– To create new jobs and maintain existing ones in the Jamaican
economy

3. Background
•
Began operations in October 2000 as JN Micro Credit.
•
A micro-credit portfolio was purchased from FINSAC by Jamaica National
Building Society
•
Portfolio at that time consisted of 2,039 loans for a principal value of
$37.9 million
•
Staff complement of 13, of which 8 were field officers
•
Operated from 7 locations in two parishes-Kingston & St Catherine
•
In 2003 the company’s name was changed to JN Small Business Loans Ltd.

4. Target Audience
Persons between the age group 18-65 years who:
– own and operate a business in the micro informal
commercial sector and need capital injection of between
$60,000 and $1 million to expand their businesses
– own and operate a Small Business and need up to $3
million to improve or expand their businesses
– are in the tourism industry or supply at least 30% of their
products to the tourism industry
– Individuals who need a personal or education loan up to
$250,000
– Individuals who need a motor vehicle loan up to $2 million

5. Loan Products
Loan

6. Collateral Accepted for micro
loans
• Bill of Sale over household appliances with serial numbers (e.g.
refrigerator, television, component set)
• Motor vehicles
• Bill of Sale over tools with serial numbers (e.g. sewing machine,
band saw)
• Bill of Sale on assets financed with loan funds
• Third party guarantees.

7. Qualification Criteria for micro loans
• Must be at least 18 years old
• Must be in business for at least six months
• Must have a tax-payer registration number (TRN)
• Must be able to show evidence of paying bills on
time.
• Must be of good character

8. Required Documents
• Proof of identification-
• either a passport, a driver’s license, or the National ID card
• A TRN card
• 2 recent passport-sized photographs
• 2 written recommendations, one of which must come from either:
- Justice of the Peace
- School Principal
- Senior Police Officer
- Minister of Religion
• Completed JNSBL Pre-application Form

9. Bizboost loans for small and medium
sized businesses
• To finance the purchase of fixed assets and to
provide working capital support for small and
medium sized businesses engaged in value
added activities.
• Loan amounts between $500,000 and $3
million
• Interest rate 22% on the reducing balance

10. Loans to Small and medium sized
businesses
• Collateral
– Real estate
– Motor vehicles
– Equipment
– Hypothecation of deposits
– Third party guarantee

11. Loans to small and medium sized
businesses
• Requirements
– A business plan
– A clearly established market
– Prior experience in the type of business

12. Tourism Enhancement
Fund (TEF) Development Loan
Offered to individuals, partnerships and
companies (including new businesses) which
provide goods and services to the tourism sector.
A minimum of 30% of the business must be
committed to providing goods and/or services to
the tourism sector.

13. Tourism Enhancement
Fund (TEF) Development Loan
•
Maximum loan: $5 million
•
Interest rate: 5% per annum
•
Maximum term: 5 years
•
Moratorium: 6 months (maximum) on the principal
•
Collateral:
Guarantee of Directors PLUS any of the following:
– A first charge over any asset purchased with loan funds
– Real estate
– Motor vehicle and/or equipment
– Any other assets owned by the applicant

14. Milestones
Inception
March 2012
% Increase
# of Loans in
Portfolio
2,039
11,908
484
Portfolio Value
J$37.9 M
J$597.9M
1,478
Staff
13
147
1,030
Field Officers
8
79
887
# of Regions
2
6
200
# of Locations
7
26
271

15. Milestones (cont’d)

16. Milestones (cont’d)

17. Milestones (cont’d)

18. Milestones (cont’d)

19. Milestones (cont’d)
Total = 280,823

20. Milestones (cont’d)
Total = $13,028,933,600

21. Milestones (cont’d)
Employment created and maintained since
inception - 74,715

22. Portfolio Information

23. Portfolio Information (cont’d)

24. Portfolio Information (cont’d)

25. Portfolio Information (cont’d)

26. Portfolio Information (cont’d)

27. Portfolio Information (cont’d)

28. TEF Loan Scheme
•
•
•
•
•
Committed from the TEF - $310M
No. of loans disbursed – 120
Value of loans disbursed - $288.75M
Number of loans in the portfolio – 106
Value of loans in the portfolio - $180.32M

29. Strategic Alliances
Loan Funds
Loan funds, loan disbursements,
collections and Information
Technology support
Loan funds
National Investment Fund
Loan funds
Collections through post offices
in Linstead, Bog Walk, Greater
Portmore, Waterford, Crofts
Hill, Kellits, Albert Town and
Lluidas Vale
Technical assistance and
pending loan financing
Loan funds

30. ACHIEVEMENTS

31. Implementation of
GIS Technology
The GIS technology is used to:
– Map & locate our clients, offices and payment
locations
– Conduct vulnerability assessments on the location
of our clients’ businesses and homes
– Locate areas for expansion/areas without any
loans
– Discover patterns/characteristics associated with
delinquent clients

32. JNSBL & GIS Technology (cont’d)

33. JNSBL & GIS Technology (cont’d)

34. JNSBL & GIS Technology (cont’d)

35. Implementation of a Disaster
Mitigation Programme (DMP)?
• The DMP is designed to acquire non financial
information about clients to determine how
susceptible they are to various hazards
especially hurricanes, landslides, flooding and
earthquakes.
• Information on clients’ locations and building
structure are collected to determine their
vulnerability to these hazards.

36. Disaster Mitigation Programme
Information collected is matched with our GPS waypoints on a
map to give a graphical picture of our clients’ vulnerability.

37. Implementation of the
Smart Campaign
• A three-year initiative being undertaken by a broad
coalition of microfinance institutions and other
entities around the globe to protect micro clients
from potentially harmful financial products and to
ensure that they are treated fairly.
• It embodies six core Client Protection Principles
setting the standard for all providers of micro finance
worldwide.

38. Six Core Principles

39. Achievements (cont’d)

40. Achievements (cont’d)

41. CHALLENGES
• Very little information about potential clients
resulting in difficulty in assessing credit risk
• Acts of God- hurricanes and flooding
• Potential clients have no bankable collateral
• No accounting records or documentation on
income and expenses
• No separation between business and
household cash

42. Challenges
• Social Unrest
• Collateral Issues- no bankable collateral and
proof of ownership of appliances and
furniture
• Client selection and retention-building a
culture of on time repayment
• Financing portfolio growth – sourcing
appropriate funding

43. How we have adapted to the
market
• Full responsibility of the Field Officers for their
portfolios
• Field Officer gets an incentive which includes a
bonus for the loans disbursed and the
portfolio outstanding and is discounted for
poor loan quality
• Field Officers are audited regularly and bear
consequences for infringements

44. How we have adapted to the
market
• Developing a close relationship with the
clients by creating constant access to financial
services.
• Graduation principle – client is rewarded if
they show good repayment behaviour-bigger
loans and better conditions
• Analysis of Debt Capacity which takes into
account business and family expenses

45. How we have adapted to the
market
• Analysis of clients’ character by obtaining
verbal and written references.
• The terms of a loan depend firstly on the
financial and risk analysis and secondly on
collateral
• Purposes of collateral are to induce the client
to repay and to cover losses of the
organization

46. How we have adapted to the
market
• Clients need to fear that they will lose
something valuable (psychological pressure).
• Repayments are monitored daily
• Enforcement measures are strict and fast as
possible
• Bad repayment disqualifies a client from
further loans

47. How we have adapted to the
market
• Good repayment qualifies clients for bigger
loans and better terms
• Approval and disbursement of loans are
approved by a Credit Committee that
guarantees compliance with procedures,
transparency and high quality decisions

48. How we have adapted to the
market
• Acts of God – provide disaster recovery loans,
provided grants to those worst affected,
rescheduled loans for those with adequate
repayment capacity, and write off of loans
where clients have lost both business and
home

49. Strategic Initiatives 2012
• Roll out of the new loan underwriting
methodology
• Partner with the Jamaica Business
Development Corporation to support the craft
industry
• Implement mobile finance in conjunction with
JNBS and JN Foundation

50. Strategic Initiatives 2012
• Develop and implement a new loan
underwriting application
• Continue the growth of the micro credit
portfolio by increasing the number of Field
Officers and locations
• Continue the growth of our branch network

51. Strategic Initiatives 2012
• Provide additional payment options to our
clients, particularly in rural areas.
• Continue the relationship with the IFC, DBJ,
Pan Caribbean, USAID and EXIM Bank
• Develop a strategic alliance with the IDB
• Continue to seek new financing for the micro
credit portfolio.

52. “WE MEAN BIG THINGS FOR
SMALL BUSINESSES”!
Website: www.jnsbl.com
Email us at: jnsblinfo@jnbs.com
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