Government measures in key jurisdictions 3rd edition final - Flipbook - Page 32
Hayden Isbister | hayden.isbister@mourant.com | +1 345 814 9125
Hector Robinson | hector.robinson@mourant.com | +1 345 814 9114
Ramesh Maharaj | ramesh.maharaj@mourant.com | +1 345 814 9170
Tony Pursall | tony.pursall@mourant.com | +44 (0)20 7796 7603
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
Employment
•
A Low Interest Loan Programme, administered through the Cayman Islands Development Bank, will
provide loans to micro and small businesses which are 100% Caymanian-owned and have been
operational for at least twelve months prior to March 2020.
•
The programme will provide each borrower with a fully-backed government guarantee. The amount
available is up to a maximum of KYD50,000 for a small business and KYD20,000 for a micro business.
There will be a six month period of moratorium during which the bank will not collect principal or
interest payments. The loan will be given for a period of five years at 1% interest in the first year,
subject to increase thereafter.
•
Banks generally provided customers with an initial three month grace period for mortgages and
personal loans. These payment deferral schemes are now being extended for another three
months until 30 September 2020.
•
Some banks have offered business customers with a remaining loan principal of up to KYD 2
million, the option to pay interest only for three months. Further deferment may be available on
a case by case basis. Business customers with higher value loans may be offered assistance by
individual agreement.
•
What financial support is
the government
providing to individuals
on employment issues? •
32
The Ministry of Commerce, Planning and Infrastructure has implemented a number of relief
measures to support micro and small businesses, including a Micro and Small Business Grant
Programme, a Low Interest Loan Programme (as detailed above), a Technical Assistance
Programme and a government funded Training Programme.
The Micro and Small Business Grant Programme is providing assistance of KYD1,000 monthly
to selected micro and small business for three months.
•
The Technical Assistance Programme offers qualified accountants and other professionals to
provide technical guidance and coaching to micro and small businesses to help them
navigate this difficult period and keep their financial obligations to financial institutions.
•
Payment of trade and business licensing application fees from 1 May to 31 July 2020 have
been waived. Late fees from 1 March to 31 July 2020 will also be waived.
•
Amendments to the National Pensions Law have provided for a pension holiday from 1 April
to 30 September 2020. Qualifying pension plan members may also withdraw funds from their
account subject to certain provisions.
•
The Government has enacted regulations to extend the period of temporary layoff before
which severance pay is payable. This extension enables employers to continue to employ
staff rather than terminate their employment and ensures that employees retain more of
their earnings while accruing other employee benefits under the Cayman Labour Law.
•
The Cayman Islands Needs Assessment Unit is providing financial assistance to individuals in
need on a case by case basis. The Government has also provided a one-time stipend of
KYD425 in addition to the KYD850 current monthly stipend.
Government measures in key jurisdictions