INFORMATION FOR LENDERS

Is there a minimum amount that can be loaned to the Fund?

Yes. The minimum loan to the Fund per individual or household is $1000.

How much interest will be paid on my loan to the Fund?

The rate of interest will be determined at the time of your loan to the Fund. Some lenders may choose to accept a reduced interest rate or waive receiving interest in order to provide more money for operation of the Fund.

When will my money be repaid?

Lenders are asked to lend their money to the Fund for a minimum of three years, but shorter terms can be arranged if necessary.

What if I need my money back on short notice?

Approximately 20% of the Fund will not be committed to guarantee loans made by CCEC to borrowers, and this amount is available as a reserve fund to pay back lenders who need to be repaid from the Fund.

Is my loan secure?

Your loan to the Fund is not secured by a mortgage or other interest in property, but the Fund has a legal obligation to repay your loan. However there is a risk associated with lending your money to the Fund. It is possible that a borrower whose loan from CCEC is guaranteed by the Fund may default on their loan. In that case, all lenders to the Fund would proportionately share the loss.

How do you decide what borrowers qualify for a loan guaranteed by the Fund?

Successful applicants for a loan guaranteed by the Fund have local references and a demonstrated commitment to the island and to their proposed project, as well as a comprehensive project or business plan, and an ability to repay their loan. For further information please see the Borrowers’ page.

I would like to lend some money to the Fund. What's the first step?

Download and complete the Lender’s Agreement and mail it along with your cheque to the Fund address shown on the sidebar of this page. The Fund will then issue you a promissory note.