Last updated: Aug. 10, 2020
Status: Under Implementation

Project Documents

Enterprise Support Project

Approval date
April 04, 2019
Effectiveness Date
First Disbursement Date
Closing date
December 30, 2024
Burn rate
0.50%
Procurement plan

Overview:

The Enterprise Support Project offers financial support to Micro, Small, and Medium Enterprises (MSMEs) in Sint Maarten. The project grants eligible MSMEs access to loans and grants for working capital, asset repairs and resiliency investments.

The project is aimed primarily at MSMEs in the tourism sector; for example, restaurants, shops, creative industries, and tour operators. Non-tourism businesses may include ventures in agro-processing, equipment supply, retail, business, or health services.

Financial Summary:

Commitment

Disbursement

Ratio

The Enterprise Support Project has three main activities:

  • Loans and grants to MSMEs for working capital, asset repairs and resiliency investments:

     

    Eligible MSMEs receive tailored packages of grants and loans for asset purchase and/or repairs, as well as working capital loans if required. Only productive capital assets and nonstructural repairs are financed by the project.  

  • Project management, implementation & training:

     

    These funds are targeted at implementation support and project governance. Also, loan officers and other staff at financial institutions will be trained to improve their MSME lending skills and business continuity planning.

  • Analytical study on financial solutions to strengthen business disaster resilience:

     

    Financial instruments, markets, tools, and solutions available to improve disaster resilience in Sint Maarten are investigated. Such markets or instruments may include private insurance, public asset insurance, sovereign insurance markets, regulation, and appraisal standards.

Project Component Status Results
Cumulative number of MSMEs that are new for participating lenders (Number)    
Percentage of loan packages by volume that include grants (Percentage)    
Study undertaken for improving financial solutions for disasters (Number)    
Cumulative number of loan officers trained in MSME lending (Number)    
Cumulative Number of enterprises and loan officers trained in business continuity planning (BCP) (Number)    

The hurricane has significantly depressed economic activity. Losses over 2017 to 2019 (foregone production and decline in economic flows) were estimated at about 90 percent of GDP, mostly in the tourism sector. Many businesses have closed, and out-migration has increased. For surviving enterprises, there is a need to maintain workers and continue post-disaster recovery and resiliency investments in order to restore to pre-hurricane capital and labor levels and to support further enterprise growth and job creation.