Frequently Asked Questions

1.     What is a supply chain?

A supply chain refers to a network of companies that work together to produce and distribute a product or commodity. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. Additionally, the aim of an efficient supply chain is to result in lower costs and a faster production cycle.

There are two main types of supply chains, vertical and horizontal:

a.     In a vertical supply chain – the Lead firm cooperates with a number of service providers who supply them with inputs to create products to supply specific markets. An example is a processor, who has transactional relationships with producers / farmers, suppliers, importers and buyers. The Lead or Anchor firm can also own subsidiary firms within its value chain.

VERTICAL SUPPLY CHAIN

b.     In a horizontal supply chain – the Lead firm cooperates with a number of similar providers normally within the same industry and which are of similar size and scale. These firms, led by the Anchor, work together to achieve common goals, such as supplying an export market whilst benefitting from economies of scale or scope. A Lead firm can also own similar firms within its value chain. Mergers and acquisitions are common occurrences within horizontal supply chains.

HORIZONTAL SUPPLY CHAIN

2.     What is an Anchor Firm?

An Anchor is a (generally larger) buyer firm which works with a number of SME suppliers and generates foreign exchange earnings through exports and/or foreign exchange savings through import substitution.

3.     What type of applicants is the JBF looking for?

The supply chain is the network created amongst different companies producing, handling and/or distributing a specific product or service. The JBF is seeking to work with supply chains made up largely of small businesses/SMEs who sell to a buyer firm.

4.     I am having trouble viewing the website, eligibility criteria template and application forms on my smart phone.

The application cannot be accessed on a phone, it is better to use a computer to download and fill the application.

5.     I am a small business and I need to purchase equipment to expand my business. Do I qualify?

The Fund does not directly support the purchase of major pieces of equipment. However, the value of the major equipment can be used as co-payment in the reimbursable grant proceeds. Further, firms in agriculture are eligible for grants covering one-off costs for irrigation equipment and seedling material.

6.     What are the project timelines for the Jamaica Business Fund?

The Grant Fund is available over a three (3) year period, beginning July, 2016 – June, 2019.  There will be three (3) cycles, one each year, beginning with a Call for Concept Notes, a Full Application and then Project Implementation for a period of eight (8) months for successful applicants.

a.     Projects that cannot be completed in one year can be schedule into the next year. *

7.     I am a director of a limited liability company manufacturing company but I am also in partnership with other farmers. Can I still apply for the grant?

a.     A limited liability company is a legal entity acting on its own behalf and is often an Anchor firm. Persons acting in their own private capacity can be members of the group of supplying firms and thus their enterprise may be eligible to the grant.

b.     In cases where the Anchor firm is a Medium Sized Business it can also be eligible for grant along with other members of the group of supplying firms.

8.     I am a small company that manufactures and sells condiments to a manufacturing and distributing company. I purchase packaging material locally but import some of the ingredients in my production process. Can I benefit from the grant?

a.      To benefit, the SME can work with the manufacturer/distributer as the Anchor in defining the supply chain and access the grant funds.

b.       Firms must be in a transactional (buying or selling) relationship with other firms in the supply chain to access the grant funds. The larger the number of firms in the supply chain and the value that the project brings in the form of increased sales and job creation will make the project more competitive.

9.     Is the Grant Programme only for businesses in the agriculture sector only?

a.     No. The Fund is not limited to businesses in agriculture only but it extends to all firms in other subsectors as long as a supply chain exists, such as in the Creative Industries or Technology sector.

10.  Can an Anchor Firm submit more than one application?

a.     A supply chain may receive more than one grant under this facility in cases where two projects in sequence are needed to fully achieve the desired outcomes.

b.     A single enterprise may receive more than one grant for two distinct projects where it is part of two different supply chains.

c.     An enterprise may also work with the same anchor firm on two separate teams if the anchor firm is approved for two projects.

11.  I am an Anchor Firm but the project I planned to do is very risky and needs a lot of resources. Is there any provision in the Fund to mitigate the risk?

a.     The Fund has a provision of 35% grant to anchors where the assessed risk is challenging. The Fund also provides access to project facilitates who can assist in the successful designing and implementation of the project.

12.  Who are Primary and Secondary Producers?

Primary producers are mainly firms involved in farming and fishing, secondary producers are those involved in processing in any form. Primary producers benefit from up to 70% grant contribution while secondary producers can benefit from up to 50% grants.

13.  I am an Anchor firm applying for the grant fund. Can I submit the concept note without the supply firms signing the document?

No the application is only valid when the beneficiaries sign, which is evidence of their commitment to the business plan.