GOVERNMENT OF JAMAICA TECHNOLOGY INVESTMENT FUND GUIDELINES FOR APPLICATIONS
The Technology Investment Fund is a special fund established to finance investments in commercial activities which contain new or substantial technological improvements and which would not qualify for funding using the existing criteria of commercial and development banks. It will also provide funding for research and development activities to enhance competitiveness and/or complement productivity in existing commercial enterprises.
1.1 Objectives of the Fund. The Technology Investment Fund (TIF) is intended to achieve the following broad objectives:
i. To foster the economic development of Jamaica.
ii. To promote the application of Science and Technology to commercial activities aimed at effecting technological improvements in identified sectors of the economy.
iii. To increase the availability of and access to project – based financing for strategic sectors of the economy identified in the National Industrial Policy.
1.2 Investment GuidelinesThe fund will limit its participation in any single project, inclusive of grant, loan and equity financing to a maximum of sixty (60%) of the project cost.
1.3 EligibilityProjects eligible for consideration include:
i. Commercial activities that have a significant technological component arising from the development of new technology, technology transfer or the adaptation of improved/appropriate technological applications.
ii. Commercial and R& D projects that are complementary to, or will enhance the development of a local industry.
1.4 Allocation SystemFunds may be allocated to a project by way of loan, grant or equity or a mix of these instruments, as deemed appropriate.
1.5 Application Procedure Applications for the funding of green-field projects or S&T components of new or existing projects are to be submitted directly to the National Foundation for Development of Science and Technology. Written proposals should be submitted on the form provided. These must include details of the approach to be adopted in project implementation and will have to be supported with oral presentations. The applicant may be required to provide more details on certain submissions.An application fee of $1000, to partially defray processing costs will be required.
1.6 The Application Form Information required to complete the loan application form includes:
1. Name
2. Registered company name
3. Address (including telephone, fax or e-mail)
4. Constitution of business
(a) Limited Liability
(b) Partnership
(c) Proprietorship
(d) Other (Specify)
5. Year of incorporation or start-up.
Please indicate year of incorporation or start-up. If business has not operated continuously since start-up, state the reasons.
6. Name of affiliated company
(a) Parent
(b) Other
7. Line of business
(a) Agro-industry
(b) Information Technology
(c) Environmental Technology
(d) Other (state)
8. Purpose of investment Indicate the main purpose for the application of financing.
9. Main Shareholders and their holding List the directors – indicate their share holding, if any. Also indicate involvement in the daily affairs of the company.
10. Details of foreign investors Indicate share holding and involvement in daily affairs of the company.
11. Number of employees State the actual number of current employees and estimate the number of employees after the investment.
12. Legal considerations Are there any legal proceedings against the company. If yes, please specify.
13. Project Information
(a) Project Title
(b) Project Summary
(c) Expected Duration of Project
(d) Type of funding being requested
(e) Amount of funding being requested
14. Project Planning Matrix
(a) Overall Goal
b) Project Purpose
(c) Project Outputs
(d) Project Inputs Objective, verifiable indicators, means of verification and critical assumptions should be included for each of the above.
15. Project Description
(a) Project Location
(b) Target group or beneficiaries
(c) Background justification
(d) Results to be achieved
(e) Major milestones of the project
(f) Methodology
16. Resources and funding
(a) Resources required under this proposal
(b) Resources to be supplied by the institution /applicant
(c) Other organizations (except institution of the applicant) from which the project has received or applied for resources
(d) Human resource needs of the project
(e) Degree of dependence on inputs to be sourced overseas, type and location of sources
(f) Major partners
(g) Relation of project to other commercial or research activities
(h) Perceived risks to the success of the project
(i) Potential markets for project outputs
17. Profile of major technical project personnel
(a) For each, state name, title, length of project experience.
(b) In addition other working experience, educational qualifications or other training received should be included.
18. Estimated capital cost of project Include cost of capital items and source of funds.
19. Estimated annual operational budget
20. Proforma projected cash flow
1.7 Approval Process: The Technical and Financial Review Committee (TFRC) will review projects for economic, commercial and technical merit. Technical assistance may be provided by the TFRC, to guide the applicant in the preparation of a pre-feasibility analysis. The final approval of projects will be the responsibility of the Project Approval Committee which will communicate all decisions in writing to the applicant.Terms of financing will be kept as simple as is consistent with standard prudential requirements. Commitment Fees and other charges A non-refundable Commitment Fee equivalent to 1% of the loan/grant amount is payable. All statutory payments relating to the Commitment Fee is to be paid upon acceptance of the commitment.
1.8 Use Of Funds
Funds may be used for equipment purchases (lease arrangements will be encouraged), supplies, prototype development, direct R & D expenses, technical feasibility assessment, field testing, short-term consultancies, market surveys, intellectual property protection and other efforts related to the commercialization of a technology or a new or improved product or process.Funds may not be used for the procurement of motor vehicles or costs unrelated to the project.
1.9 Matching Resources
It is a requirement that counterpart resources to complement those provided by the Fund be identified, before disbursements begin. Full disclosure and verification as well as the conditions governing these commitments, including intellectual property rights issues, must be provided.
1.10 Termination
Contravention of the terms and conditions in the financing agreement will result in the termination of the arrangements.
Institutional Framework
The institutions involved in the administration of the Technology Investment Fund are:
The National Foundation for Development of Science and Technology (NFDST)
The Foundation, as the steward of the Fund is responsible for establishing policy and operational guidelines and ensuring the proper operation of the fund so that its success and long term viability are achieved.
The Foundation will establish a Project Approval Committee to review applications forwarded by the Technical and Financial Review Committee (TFRC) and will approve funding to those projects that have satisfied the criteria established.
The National Development Bank (NDB)
The NDB will manage the funds on behalf of the Foundation performing the treasury functions. It will also perform disbursement, primary monitoring and collecting functions for loans.
The Scientific Research Council (SRC)
The SRC already has established a Technical Review Committee (TRC) comprising in-house technical expertise, members co-opted from other S & T institutions and industry.
This committee will be strengthened by the inclusion of representatives from the NDB to form the Technical and Financial Review Committee (TFRC) with an enhanced role. The TFRC will vet the technical, financial and other merits of applications.