7 News Belize

And so while the UB faculty and staff are fearing the worst lies ahead for them - for many in the tourism sector, who've been laid off for months - the worst is already upon them.

They got some measure of relief today when the government announced that the second phase of its unemployment relief program was going into effect at the middle of this month.

Additionally, there will be money set aside for struggling micro, small and medium enterprises to access working capital and keep their staff employed. Here's more from a virtual press conference via the zoom platform:

Rt. Hon. Dean Barrow - Prime Minister

"We are today announcing the start of phase two of the national unemployment relief program. And we are also unveiling a new initiative to provide special assistance to the so called MSME's, that is micro small and medium enterprises."

Dr. Carla Barnett - Economic Czar

"It's an important transition because we're moving, we're broadening the focus from simply dealing with unemployment relief, to employment protection, employment creation, employment generation through the micro, small and medium enterprises."

Studies have shown that the vast majority of jobs and income are generated in the MSME sector and give them a little cash infusion could mean resuscitating the economy.

Dr. Carla Barnett

"So keeping them alive yes, employing people so that they can go and purchase and pay their bills and keep their families alive, yes but that is how we define economic activity that's what it is."

So, these small engines of economic stability will be eligible for low interest loans:

Dr. Carla Barnett

"In phase two of the program we're setting aside two million which would be grants for micro enterprises; 7 million for unemployment relief which would be paid through MSME's who keep their employees social security payments up to date; and we will be setting aside five million to provide soft loans for working capital to assist MSME's in preparing for the re-opening, and basically to keep them alive and keep their employees livelihoods together as we transition through this very difficult economic time."

Hon. Tracy Panton - Min. of State - Investment

"There are three categories of micro and small enterprises that will be addressed in this program, the micro enterprises themselves that have two to four persons that are employed, including the owner of that business; small enterprises identified as those entities that have five to 20 employees; and medium enterprises between 21 and 50 employees."

"Two million dollars has been set aside for grants to the micro enterprises across the country. In addition to the two million dollars, ahm, that will come from the government coffers, the Beltraide Board of Directors has approved an additional 500k to add to this amount so that we can serve another 200 or so micro enterprises with the small grants program. There is also the 7 million dollars which will be used for wage subsidies, and then another 5 million dollars set aside for working capital for medium enterprises. For enterprises that are classified as 5 to 20 employees, the cap on the loans would be 15k, and for medium enterprises the cap would be 25k dollars. It is expected that there would be a 12 month grace period for these entities that are approved under the small grants program and that the interest rate would be 3% over a period of two years."

And what businesses qualify?:

Dr. Leroy Almendarez - Executive Director, BELTRAID

"They must be engaged in these following areas: tourism and leisure, transportation and logistics, agriculture, agro-processing, fisheries, light manufacturing, creative and cultural industries and commercial free zone, but we're focussing more, it's really a focus on the employees, those who can access that wage subsidy that was mentioned, that 7 million dollar age subsidy, and of course they must have been negatively impacted by COVID 19."

It's a big plan to try and get a derailed economy back on track:

Rt. Hon. Dean Barrow

"All of this is calculated to try to produce the start of the recovery that we are all longing for. We believe this is going to be relief that is tangible that people can feel and that will assist enormously with the post covid re start to the economy."