Browne Acknowledges Loan Repayment Challenges in Entrepreneurial Fund, Vows Expansion After Election

Prime Minister Gaston Browne says the government’s Entrepreneurial Development Fund is facing significant repayment challenges, but pledged that the programme will be expanded rather than scaled back following the upcoming general election.

Speaking on Pointe FM’s Browne and Browne Show, Browne said a growing number of borrowers have failed to meet their repayment obligations, contributing to what he described as a high delinquency rate.

“Many people believe that government money is free, and they don’t have to pay it back,” Browne said, noting that the issue has affected the sustainability of the fund.

Despite the challenges, the prime minister made it clear that the administration has no intention of shutting down the programme, which provides low-interest loans to small businesses and aspiring entrepreneurs.

“We persist because we don’t want to close that window,” Browne said. “We want to continue to help young entrepreneurs in particular.”

The fund, which currently holds an estimated $4 million to $5 million, has been a central part of the government’s strategy to stimulate small business growth and economic participation, especially among youth.

Browne said the government plans to increase the size of the fund after the election, allowing for greater access to financing and the possibility of larger loans for qualified applicants.

“We will make sure that we expand that programme after elections,” he said, adding that additional resources would be injected to support more entrepreneurs.

The Entrepreneurial Development Fund offers loans at significantly lower interest rates than commercial banks, often ranging between 1% and 3%, depending on the sector. It has been promoted as a tool to encourage business creation and reduce barriers to entry for individuals without access to traditional financing.

While acknowledging the repayment issues, Browne maintained that the broader goal of empowering entrepreneurs remains a priority, even if it comes with financial risks.

The expansion of the fund is expected to form part of the Antigua and Barbuda Labour Party’s economic agenda as the country heads into elections later this month.