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Two associations representing small businesses in Jamaica have welcomed the move to amend the laws governing the use of personal property to acquire loans and hope the change will make it easier for their members to do business.
Minister of Industry, Investments and Commerce Senator Aubyn Hill says the amendments to the Security Interests in Personal Property Act, better known as SIPPA, will expand access to credit for businesses and entrepreneurs, and further simplify and broaden financing options for small businesses.
A Joint Select Committee of Parliament conducting a statutory review of the SIPPA, approved its draft report at its last meeting on January 23, outlining significant recommendations aimed at strengthening the SIPPA framework and enhancing access to credit, a news release from the ministry said.
Introduced in 2014, SIPPA changed the way Jamaicans secured loans, allowing personal assets like equipment and inventory to be used as collateral.
“The upcoming changes, now in their final stages of legal review, will improve the act’s effectiveness and inclusivity. These changes will allow more individuals and businesses to utilise the potential of movable assets as security for financing arrangements,” the ministry said.