IDB Lab, the innovation lab of the IDB Group, approved a US$1 million loan to Term Finance SME TT Limited (SME TT), to support their innovative digital lending model which provides loans to excluded micro, small, and medium enterprises in Trinidad and Tobago, and later in other Caribbean countries.

This financing, combined with resources from their local banking partners, First Citizens Bank, will enable SMEs to more easily and rapidly access the credit they need to expand their operations and sales, and thus sustain the crucial jobs they generate, mainly among vulnerable and low-income populations. The loan will focus on expanding and perfecting the online, customer-centric business model for MSME lending, piloted by SME TT since January 2020. Once consolidated in Trinidad and Tobago, it is expected that SME TT will subsequently begin lending operations in Guyana, Jamaica, Barbados, and Saint Lucia.

In as little as 5 minutes, MSMEs can visit the company’s website (www.sme.tt), gather the relevant information surrounding interest rates, loan size, loan term, repayment terms, and submit their initial application, all without any need to physically visit the company offices. Loan applications to SME TT can be made 24 hours per day and 7 days per week. Having made the initial online application, MSMEs are contacted within one business day to complete the submission of the required documentation for the creditworthiness assessment. The digitization of the application process significantly reduces the required time and resource allocation, which is often a major hurdle in MSME access to finance.

Over the next few years, SME TT expects to extend loans of over US$45 million to more than 1,200 companies in the region, 50% of which are expected to be extended to enterprises that are founded or operated by women.

About IDB Lab

IDB Lab is the innovation laboratory of the IDB Group, the main source of financing and knowledge for development, focused on improving lives in Latin America and the Caribbean (LAC). The purpose of IDB Lab is to drive innovation for inclusion in the region, mobilizing financing, knowledge, and connections to co-create solutions capable of transforming the lives of vulnerable populations due to economic, social, or environmental conditions. Since 1993, IDB Lab has approved more than $2 billion in projects developed in 26 LAC countries, including investments in more than 90 venture capital funds. www.bidlab.org

About Term Finance SME TT Limited                                

Term Finance SME TT is a joint venture between Term Finance Holdings Limited (TFHL), led by Mr. Oliver Sabga, and 3Stone Limited, led by Dr. Christian Stone. The company’s mission is to fill the gap that exists in innovative, convenient, and responsible access to finance for micro, small and medium business in Trinidad and Tobago as an almost exclusively digital process. SME TT evaluates all clients through an evaluation of both qualitative and quantitative criteria that is client-centric and guided by a commitment to lending in a responsive and fit-for-purpose manner. www.sme.tt