As the average small business operator focuses on building their business, paying staff, making a profit and generally staying open, you can count on the politicians to pass laws that make things better.
So let’s take a look at the laws that have been passed in the recent history of Jamaica.
- Adoption of the Credit Reporting Act and licensing of three Credit Bureaus.
Gone are the days when you could go from one bank to another and borrow without any track record of your repayment. The banks know who you are, how much you owe and use that to determine if they are going to lend you more money.
- Modernization of the Secured Transactions Framework with the adoption of the Security Interests in Personal Property (SIPP) Act.
Remember when the credit unions used to allow your refrigerator as collateral? Well the SIPP law now allows banks to also give loans on household furniture, crops, intellectual property and other movable items that a bailiff cannot keep track of.
- Establishment of an Electronic Movable Collateral Registry.
In correcting the loop hole found in SIPP, this piece of legislation says now you can put a tag on your refrigerator, crops and other items so that a bailiff can indeed keep a track of it.
- Establishment of a MSME Unit a the Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF).
There are high expectations from key industry players for the “Man a Yaad” to bring vibrancy to this division of government. For our readers in the Diaspora, the Man a Yaad is xxxx
- Adoption of the MSME and Entrepreneurship Policy Framework.
So there are policies and a framework for said policies made by people who do not operate small businesses.
- Implementation of Guidance on Problem Asset Management and Provisioning Requirements.
Essentially, the law says that lenders must have a written policy on problem assets and how to account for bad debts.
- Effective January 1, 2019, the Bank of Jamaica has mandated that all deposit taking institutions (the banks) must adopt the provisions of SIPP into their list of items acceptable as collateral. So we are back to looking at how to get a loan for your refrigerator and other moveable assets.
So yes, there are those who say this article has taken a flippant approach to serious legislative framework that supports the small business sector. And you would be right. Most small business people I know are working to make their business work, drive sales, hire the right people, compensate the right people so that they can keep them in the business and generally build a legacy for their children. Yet, there is a recognition of the importance of the sector and the policy makers are seeking to bridge the gap. Kudos for trying.
