A NEW facility for providing financing to the micro and small enterprise sector will be unveiled next week when Prime Minister Bruce Golding delivers his presen-tation in the 2009-2010 Budget Debate.

This was divulged by Industry, Investment and Commerce Minister Karl Samuda yesterday during his contribution to the debate.

At present, $2.5 billion is available to the sector through a number of lending institutions.

"And when the prime minister makes his presentation he will indicate an additional facility that may see, in terms of access, I know I may be careless in saying this, but it could double that figure," Samuda said, "but he (prime minister) will explain when he comes to deal with that matter."

In another development aimed at the small business sector, Government on Monday signed off on its small-business procurement policy.

Under the new policy, a minimum of 15 per cent of government procurement will be set aside for micro and small enterprises.

Breakdown

Giving a breakdown of the maximum contract sizes under the new policy, Samuda said works contracts would have a ceiling of $10 million, service contracts, $5 million, and goods contracts, $1 million.

He said contracts ranging between $375,000 and $10 million for small businesses would be exempt from providing a bid bond.

"Because these small players cannot afford to post a bond and so they will be exempt from that," he said.

Meanwhile, effective January 1, 2009, only businesses with annual sales of more than $3 million will be required to make monthly returns on general consumption tax (GCT).

The previous ceiling for making GCT returns was annual sales above $1 million.

The minister pointed out that this move would remove the administrative burden of monthly returns for more than 2,800 small businesses.

With this new arrangement, the Government will give up $1 billion in revenue. However, Samuda said the administration was anticipating positive business results in the short and medium term.

For a company to qualify as a small business, its auditors must certify that its assets do not exceed $30 million.

edmond.campbell@gleanerjm.com