Upon successful completion of the two-week or the two-day training Programme, the participants are provided with one-on-one business plan consultancy by the business plan training team, until the business plans meet the standards of the Credit Committee before approaching the Credit Committee of the financial institution for loan negotiation.
Upon the recommendation of the Credit Committee the business plans are approved (stamped) by the Anguilla Youth Business Foundation; and the participants are provided with a recommendation letter to accompany the business plan to facilitate the loan application process.
Through a formal Memorandum of Agreement (MoA) between the Anguilla Youth Business Foundation and the Anguilla Development Board (ADB) the Loan Guarantee Fund (LGF) provides a low interest rate loan to eligible entrepreneurs.
The fund guarantees a maximum of twenty-eight thousand Eastern Caribbean Dollars (XCD28,000.00) for each eligible applicant, with 100% guarantee by the Anguilla Youth Business Foundation. The loans are administered on special terms and conditions as articulated in the MoA between the parties.
The Anguilla Youth Business Foundation negotiates from time to time with the Anguilla Development Board on the behalf of the clients for more favorable repayment plans as deemed necessary. Interest rates should range between 4% and 8%. The repayment period is determined by the size of the loan and the recipient’s ability to pay. The average repayment period is sixty (60) months. The moratorium arrangement with the Anguilla Development Board should be quite flexible.
The Anguilla Youth Business Foundation monitors the performance of the loans by obtaining monthly reports from the Anguilla Development Board and following up on the entrepreneurs on a regular basis.
Where delinquency exists, timely interventions are made; however in extreme cases of loan default the Anguilla Youth Business Foundation shall repay upon the request of the Anguilla Development Board.
The Anguilla Youth Business Foundation signs a formal agreement with the entrepreneur upon approval of the entrepreneur’s loan application. This formal document stipulates the responsibilities of the loan recipient and the ramifications for non-compliance.