DLP urges business rescue plan

Government must provide a “rescue package” for small businesses as they continue to buckle under the COVID-19 pandemic, the Democratic Labour Party’s spokesman on business Ryan Walters has urged.

But in response, Minister of Small Business Dwight Sutherland told Barbados TODAY Government is working on a “comprehensive plan’, and urged patience.

The DLP’s Walters said: “The country is now five weeks into a virtual shutdown of commerce and the most fragile within the business matrix are anxiously awaiting a lifeline.

“I want to encourage the Government of Barbados to roll out a rescue package for small businesses.”

His suggestion comes two weeks after Chief Executive Officer of the Small Business Association Senator Lynette Holder made a similar call for a $10 to $15 million bailout for micro, small and medium-sized enterprises (MSMEs).

Holder had also argued that in order for their continued survival, MSMEs who rent from Government should get an ease in rent payments, and state lending agencies to follow in the footsteps of commercial banks and credit unions and offer small business operators a reprieve.

Stating that plans were being worked out “systematically”, Sutherland asked for more patience with Government. He gave no further details.

In his plea on Thursday, Walters said the DLP is urging an overhaul of the Trust Loan Fund “to assist a far-reaching network of micro, small and medium sized businesses impacted by COVID19”

Said the DLP spokesman: “These businesses need support now more than ever. Every other country in the world is doing what it can to support the survival of small businesses.

“I want to suggest to the Ministry of Small Business, Entrepreneurship and Commerce through the proposed revamped Trust Loan Fund to act swiftly to one, rollout initiatives such as grants and interest free loans to a wide range of affected small businesses, example, barbers, hair dressers, taxi operators, beauty therapists, craft vendors, freighters, landscapers, small retailers, and all who are earning nothing, or very little income at this time.”

He also proposed that the ministry “pursue the Development of Associations and Cooperatives that serve the interest of the various sectors of the fund’s clientele and establish long-term support and financing structures for the sustainability and further development towards the advancement of micro, small and medium sized businesses”.

Walters said there was a lot to be done for small business operators, indicating that the livelihoods of the owners and their employees would have nothing to depend on in coming weeks.

He said: “Small businesses are dying, self-employed persons who pay National Insurance are not entitled to unemployment benefits and other businesses are earning no income.

“We are aware that the COVID-19 crisis has brought the Government some $360 million in external funding. In addition, Parliament approved a $20 million Coronavirus stimulus package in March. This will join funds privately donated by the expatriate community. All we are asking of the Government is to ensure funding is earmarked as soon as possible for the hundreds of small businesses impacted by the pandemic.”

But Sutherland said he was aware of the far-reaching effects on the sector from the COVID-19 pandemic, and that his ministry was working closely with all players to ensure the plan that was introduced would be one that could “stand the test of time”.

He explained that his ministry had already started the consultation with members of the Social Partnership and the commercial banks to find out what assistance could be offered, adding that the process would involve the agreement of Cabinet colleagues.

The Minister told Barbados TODAY: “We are formalising plans and you will hear these plans shortly.

“The same way we have dealt with COVID-19 plans with respect to supermarkets, we are getting solicited inputs from the private sector and all the key stakeholders. So we can soon hear ‘the Trust Loan should do this and put money towards such a business, for example.

“We recognise there are various sectors and we have to cater to them to make sure that coming out of COVID-19 businesses can survive.

“I am sure the plans we will come up with will be more comprehensive than the three-point plan you have seen by the spokesperson of the DLP. We recognise the small businesses will need a lifeline. We are not going to do anything willy-nilly or fly by night. We will make sure that what we do can withstand the test of time and that people will be taken care of in due time”. marlonmadden@barbadostoday.bb