Government measures in key jurisdictions 5th edition - Flipbook - Page 31
Cayman Islands
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
Contributor: Mourant
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
Employment
•
A Cayman Islands Government Guaranteed Loan Scheme was announced in
December 2020. Five local Class-A licensed banks will participate in offering loans of
up to KYD750,000 and KYD3,000,000 to 60% Caymanian-owned medium and large
businesses respectively to meet their operating and capital expenditure. The
maximum interest rate on the Loans will be the prevailing Cl Dollar or US Dollar Prime
Rate plus, a margin of up to 1.50%. Stamp Duty that may be applicable to any charges
placed over assets to provide security for the loans will be waived. There is a one year
moratorium period on interest payments for the first year of any loan. The maximum
repayment period is seven years.
•
The Cayman Islands Development Bank, offers a Low Interest Loans Programme with a
fully-backed government guarantee to 100% Caymanian-owned micro and small
businesses with loans up to a maximum of KYD50,000 for a small business and
KYD20,000 for a micro business. Over KYD1,000,000 has been invested to assist
businesses under this programme.
•
What
financial support is
the government
providing to
•
individuals on
employment issues?
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.
In February 2021, the Cayman Islands Government approved a one-time payment of
KYD3,000 under their Micro and Small Business Grant Programme as a stipend to
business owners who were unsuccessful in receiving funds under previous phases
of the programme. Under Phase I of the programme 1,432 businesses benefitted
from KYD4,300,000 and under Phase II 370 businesses benefitted from
KYD4,500,000.
•
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.
•
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.
•
From 24 March 2021, a business incubator will house start-ups and business owners
who do not currently have a work space from which to operate. The business
incubator is a residential space, including laptops and office equipment and access
to legal and accountancy services, which will be free of charge for 2 years.
Government measures in key jurisdictions
31
