FDB Small Business Scheme

1.       Business Purchase or Establishment. ( in the areas of construction, manufacturing, distribution  and sevices and includes the purchase of land, buildings, machinery equipment)

Do you meet the following requirements?

• Are you a Sole-trader, partnership, limited company or co-operative?
• Are you at least 21 years old and a citizen of Fij
• Have a business that is 100 per cent locally owned
• Own or intending to purchase a business which has an annual turnover of $50,000 and below
• Belong to an ethnic group other than a Fijian, Rotuman or eligible general Elector of Melanesian or Polynesian or Micronesian origin?

FURTHER, DO YOU:

• Have a viable project
• Have a good credit history with us or any other bank
• Possess the necessary skills, qualifications and experience for the intended project
• Have the ability to meet the required equity contribution towards the total cost of the project
• Have the necessary asset backup to secure the loan sought
• Have your project situated within 1 km of a government feeder road ( if on Viti Levu or Vanua Levu) or situated within 3 km of the nearest port of call if on an outer island

SECURITY REQUIRED (to adequately cover loan amount and may include)	Mortgage Debenture Joint & Several Guarantees made by shareholders and directors of the company Bill of sale Any other appropriate security
METHOD OF PAYMENT	Monthly repayment can be made directly to any FDB nationwide
EXCLUSIONS	Business with annual turnover of above $50,000
EQUITY CONTRIBUTION	Minimum of 20% of the total project

INTEREST CHARGES

First $50,000                                                                                 8 % per annum

In excess of $50,000                                                                     13.5%per annum

Interest subsidy of 5.5% with a maximum of $50,000 per applicant.

BUILDING TYPE	LOAN TERM
Purchase	15 years
Construction	20 years

DOCUMENTS TO BE PROVIDED WHEN LODGING YOUR APPLICATION.

1.        Business Plan

2.    Right of Land / Building Use-Copy of Registered Title or current lease over land or Tenancy Agreement ( term of lease must exceed loan term)

3.    Copy of Building Plans and Specifications for Building Construction ( for construction of building)

4.    Construction Contract, an Executed Fixed Price Contract for work to be undertaken ( for construction building.)

5.  Business Licence from the Local / Rural Authority

6.  Company Registration Certificate from Registrar of Companies

7.  VAT Certificate from the Inland Revenue Department

8.  Financial Statement for last 2 years ( for established businesses)

9.  Income and Expenditure Statement and Cash Flow Projections for 2 years ( for new businesses)

10.Evidence of Equity Contribution

11.Details of Other Borrowings with confirmation.

2.   Rental Accomodation

      (* Note: a few changes otherwise requirements are the same as above.)

FOLLOWING REQUIREMENTS?

4.  Own or intending to purchase a construction or property for rental with annual income $50,000 and below.

SECURITY REQUIRED ( to adequately cover loan Amount and may include)	Mortgage Debentures Joint & Several Guarantees made by shareholders and Directors of the Compnay Bill of Sale Any other appropriate security
METHOD OF PAYMENT	Monthly repayments can be made directly to any FDB office nationwide
EQUITY CONTRIBUTION	Minimum of 20% of the Total Project Cost

(* Note: Interest Charges are the same as above.)

BUILDING TYPE	LOAN TERM
Purchase	15 years
Construction	20 years

DOCUMENTS TO BE PROVIDED WHEN LODGING YOUR APPLICATION.

 (* Note: a few changes otherwise requirements are the same as above)

5 & 7.      Proof of Assured Income - Tenancy Agreement.

   For Purchase of Existing Property - a letter of Offer or Sale and Purchase Agreement.

3         Contractual Transport or Plant Operations. ( in the areas of Construction,Transport, Wholesale/Retail, Distribution and Services and includes the purchase of Fixed Assets for such businesses)

(* Note: Requirements are the same as above.)

SECURITY REQUIRED ( to adequately cover loan Amount and may include)	·         Mortgage ·         Debentures ·         Joint & Several Guarantees made by Shareholders and Directors of the Company ·         Bill of Sale ·         Any other appropriate security
METHOD OF PAYMENT	Monthly repayments can be made directly to any FDB office nationwide
EXCLUSIONS	·         Business with annual turnover of  above $50,000
EQUITY CONTRIBUTION	Minimum of 20% of the Total Project Cost

(* Note: Interest Charges are the same as the above)

VEHICLE TYPE	LOAN TERM
New Taxis* and Hire Cars	5 years
New Utilities and Vans	3 years
New Trucks	4 years
Used Vehicles of 3 years	3 years
Tractors and Heavy Rolling Equipment	7 years
Plant & Equipment	10 years of working life, whichever the shorter

                            (* currently suspended in Suva and Nausori.)

DOCUMENTS TO BE PROVIDED WHEN LODGING YOUR APPLICATION.

12.     All Vehicles - LTA Certificate of Road Worthiness

13.     3  for the Quotations for the Fixed Asset to be purchased

14.     Contractual Agreement

15.     Income & Expenditure Statement and Cash Flow Projections for 3 years (for new businesses).

16.     For Taxi Operators - A Taxi Permit and a Taxi Base

17.     For Hire Car Operators - A Hire Plate Licence.

4         Working Capital

( * Note: a few changes otherwise requirements are the same as the above)

SECURITY REQUIRED ( to adequately cover loan amount and may include)	·         Mortgage ·         Debentures ·         Joint & Several Guarantees made by the Directors of the Company ·         Bill of Sale ·         Any other appropriate security
LOAN TERM	5 years
METHOD OF PAYMENT	Monthly Repayments can be made directly to any FDB office nationwide.
EXCLUSIONS	Business with an annual turnover of above $50,000
EQUITY CONTRIBUTION	Minimum of 20% of the Total Project Cost
MAXIMUM LOAN	Not to exceed 30% of the business sales/turnover

                  (* Note: Interest Charges are the same as the above)

DOCUMENTS TO BE PROVIDED WHEN LODGING YOUR APPLICATION.

2.    Right of Land/ Building Use - Copy of Registered Title or current lease over land or Tenancy 

        Agreement ( term of lease must exceed loan term)

3.    Business Licence from the Local/Rural Authority

4.    Company Registration Certificate from Registrar of Companies

5.    VAT Certificate for the previous 3 years from the Inland Revenue Department.

6.        Income and Expenditure Statement and Cash Flow Projections for 2 years ( for new businesses)

7.        3 Quotations for Purchase of Stock.

5.    Acquisition of Shares in Companies.

DO YOU MEET THE FOLLOWING REQUIREMENTS?

(*Note: some changes otherwise requirements are the same as the above.)

·         Own a business with an annual turnover of less than $50,000.

FURTHER:

·         Are you in Regular Employment

·         If you are part of a Company, is it profitably sound and financially stable

·         Are you able to pay your loan from salary and other income supplemented by divided proceeds

·         Do you have a good credit history with us or any other bank

·         Do you have the ability to meet the required equity contribution towards the total cost of the project

·         Do you have the necessary asset backup to secure the loan sought.

SECURITY REQUIRED	·         Lien over the Shares to be Purchased ·         Assignment over the Dividend Proceeds ·         Assignment over Salary ·         Mortgage ·         Personal Guarantee from a financially sound guarantor ·         Any other appropriate security
LOAN TERM	Maximum of 5 years
METHOD OF PAYMENT	Monthly Repayments can be made directly to any FDB office nationwide
EXCLUSIONS	·         Business with an annual turnover of above $50,000
EQUITY CONTRIBUTION	Minimum of 20% of the Total Project Cost

                                (*Note: Interest Charges are the same as above)

DOCUMENTS TO BE PROVIDED WHEN LODGING YOUR APPLICATION.

1.        Business Plan

2.        Audited Financial Reports (of company you are intending to invest in) for the previous 3 years

3.        Letter of Approval from the Company where shares will be purchased

4.        Evidence of Equity Contribution

5.        Salary Slips or Financial of your company for past 3 years

6.        Any other Liabilities / Borrowings.