Growth & Jobs | M5 Business Recovery Programme formalised

Micro and small businesses devastated by Hurricane Melissa are set to benefit from a facility established by the Development Bank of Jamaica (DBJ) to support their recovery.

Dubbed the M5 Business Recovery Programme, the facility will provide a structured recovery framework for affected businesses, offering up to J$50 million in financing to businesses. The funds are repayable over a period of up to 10 years at an interest rate of eight per cent.

The DBJ formally forged partnerships with four approved financial institutions (AFIs) – three commercial banks and one state-run entity – to retail the funds.

Chief among them is JN Bank, which has the largest network among the entities and has for more than two decades been the premier provider of microfinance to micro and small businesses across the country. The other commercial banks are First Global Bank and Sagicor Bank, along with the state-owned Export-Import Bank (EXIM Bank).

The partnership was formalised during a signing ceremony held at the Development Bank of Jamaica’s offices on Oxford Road on January 26 and represents a coordinated effort to help businesses restore operations and rebuild capacity following the devastation caused by the Category 5 hurricane. The Bank of Jamaica has projected that Jamaica’s economic recovery could take up to four years, citing the severe impact of the disaster on key sectors such as agriculture and tourism.

Speaking during the signing, Dr David Lowe, managing director, DBJ, said the M5 initiative was developed shortly after Hurricane Melissa, following DBJ’s assessment of damage across seven parishes in four affected sectors, and evaluation of recovery timelines. He pointed out that the M5 initiative was deliberately designed to go beyond short-term disaster relief and address recovery in a more sustainable way.

“We did not want an incident-based response, but instead, we want the legacy framework that allowed us to be resilient over a longer period of time,” he said, adding that this approach underpins the decision to structure M5 as a programme rather than a traditional lending window.

He indicated that the M5 Recovery Programme is designed as a three-year, multi-faceted framework, facilitating flexibility, innovation and evolving interventions as conditions change. The programme also accounts for the reality of recurring hurricanes and the need for sustained preparedness.

BROADEN REACH

Travell Mullings, manager – intermediary relationship (acting), DBJ, explained that the first round of funding disbursed under the programme is intended to catalyse resilient recovery by unlocking opportunities, expanding access to capital and multiplying impact across key sectors.

“It signals that we are ready to advance ourselves as instruments of economic transformation and as lifelines to rescue, reboot and restore economic actors who have been waiting for opportunity.”

Welcoming the partnership with the DBJ, JN Bank’s deputy managing director, Gillian Hyde, opined that the programme will be vital to restoring livelihoods and providing entrepreneurs with the support they need to bounce back.

“At JN Bank, we work closely with micro and small businesses daily, so we see firsthand that behind every small business is a household that depends on it for survival, and we understand the serious implications when operations are disrupted for extended periods. These enterprises are also a critical pillar of the Jamaican economy, contributing significantly to employment and community development,” said Mrs Hyde.

“Beyond the physical damage sustained, these operators also have to deal with loss of income and the risk of permanent closure. This partnership allows us to provide greater support to them so that they can recover and rebuild during this difficult time,” she added noting that the programme will further complement her bank’s own efforts targeted to small and micro businesses in western Jamaica.

“Since the hurricane, we have been focused on offering payment holidays and loan refinancing to our clients to fast track their recovery. The M5 programme will broaden our reach and deepen our impact and ultimately assist to stimulate economic growth,” she said, pointing to evidence of the impact of similar past initiatives.

“In previous years, including following Hurricane Beryl in 2024, many entrepreneurs who received post-disaster support were able to recover and, in some cases, expand their operations,” she maintained.

Dr Lowe applauded the four participating financial institutions for coming on board to support the initiative.

“It signifies a deeper partnership of how we want to engage to address the issues that the nation faces. At the Development Bank, we are trying to do our best to create a framework and environment that is inclusive, impactful, long-lasting and evolving.”