In Saint Lucia, the average small business owner particularly young entrepreneurs do not own land and building. This, therefore, makes it increasingly problematic for business owners to qualify for loans from financial institutions, which has been a major challenge within the MSME sector. The Security Interest in Movable Assets legislation seeks to offer a solution to the lack of access to credit faced by the business sector.

The Secured Transactions reform project was conceptualized in order to create the enabling environment to increase credit for MSMEs. This new framework will allow the use of movable assets by firms to access financing to start new businesses or expand on their existing operations. The legislation will enable both borrowers and lenders to recognize movable assets as collateral thereby supporting credit financing with movable assets.

The implementation of the Secured Transactions project is an example of how Government can unlock the private sector’s potential. The introduction of this new legislative framework will better enable MSMEs to apply for credit in order to build resilience and introduce innovative products and services which will help them increase their productivity and collectively boost Saint Lucia’s level of competitiveness.