Tourism Development Loans Guarantee Programme

Tourism Development Loan Guarantee

A person wanting to establish a Family Island Tourist Development and to access guarantee loans at a concessionary interest rate at financial institutions.

Loan cannot exceed BS$500,000 and must be repaid within 15 years.

Eligibility

Any individual who wants to establish a new hotel resort or other touristic facility or to refurbish or extend an existing hotel resort or touristic facility. The applicant must:

• Be a Bahamian citizen
• Be 18 years or older
• Not be under any other liability with an approved lender for any previous loan guaranteed under the Guarantee Loan Programmes

Process

1. Applicants must submit their application to the local bank.  The bank will determine whether or not they will apply for this guarantee on behalf of the person.  A private citizen cannot apply directly to the government for guarantee because the application must come from an approved lender.
2. The bank submits the completed application form along with required documents:
   1. Loan Application
   2. Copies of passport
   3. Business Proposal
   4. Proof of Citizenship
3. The application is processed by the Ministry of Finance and once approved, an Undertaking to Guarantee is returned to the bank with a request for the bank to submit the following documents:
   1. Payment of Processing Fee
   2. Life insurance policy with the government as the beneficiary
   3. Chattel Mortgage
   4. First Demand Legal Mortgage or debenture in favour of the approved lender
4. The bank must submit a Request for Guarantee Loan Policy application form along with the requested documents to the Ministry of Finance.
5. Once all documentation requirements are satisfied, the Ministry of Finance provides a Guarantee Loan Policy
6. The bank will then issue the loan to the borrower.

Application Form(s)

• Request for undertaking to Guarantee 
• Request for Guarantee Loan Policy 
• Borrower’s Loan Proposal 
• Application for Guaranteed Loan

Supporting Documents

Request for undertaking to Guarantee:

• Loan Application 
• Copies of passport 
• Business Proposal 
• Proof of Citizenship

Request for Guarantee Loan Policy:

• Payment of Processing Fee 
• Life insurance policy with the lender as the beneficiary 
• Chattel Mortgage 
• First Demand Legal Mortgage or debenture in favour of the approved lender where there is no property available, by any other collateral or security equal to the value of the loan, any premises, which is security for the loan, is insured against all insurable risks for the full amount of the value of the property at the date of the making of the loan

Turn-around time

Loan guarantee is processed within two weeks from the date of submission of a completed application and all supporting documents.

Deadline

The request for loan guarantee policy should be made within 90 days of the issuance of the undertaking to Guarantee. Note that the undertaking to guarantee may be cancel if the request for guarantee loan policy is not submitted within 90 days.

Related Fee(s)

2% of the Loan amount.
 

Related Services

• Emergency Relief Guarantee Program
• Small Business Loan Guarantee Program

Useful Links