The Liberian Bank for Development and Investment (LBDI) has increased its loans services to several rural businesses in Bong and Nimba counties. The bank has disbursed a total of US$180,000 or L$10.8 million loans to 31 Liberian-owned businesses with an interesting 12 percent interest rate thus increasing the growth of those businesses. The loans were given to small-and medium-size businesses engaged in merchandising, entertainment and trade. These kinds of businesses are being dominated in the country mainly by Lebanese and Fulani merchants who are popularly called traders by Liberians.

But the situation is far becoming different in the country as many Liberians have begun to access bank loans to invest and heat up competition in the merchandise business.

For LBDI, there must be a special loans scheme to support local Liberian-owned enterprises to enable them become strong enough to compete with the financially viable foreign enterprises.

The loans scheme or program is known as the Young Entrepreneur Program (YEP).

The L$10.8 million loans given to the 31 businesses in the two counties are part of the bank's YEP, a loan scheme designed by LBDI to empower young Liberian-owned businesses to grow, compete with foreign businesses and subsequently dictate the pace of their economy. More than 21 businesses in Ganta, Nimba County, are currently benefiting from this program while 10 other businesses from Gbarnga, Bong County, are also benefiting from the scheme.

Mr. Al-Heat Minor is the branch manager of LBDI, Ganta branch. He told this columnist on his visit to Ganta City recently that the bank was planning to make a dramatic increment in the loans size for businesses operating in the rural parts of the country.

Mr. Minor disclosed that the Ganta branch of the LBDI is rendering services in several towns and cities in Bong and Nimba counties. “This branch is rendering services to include loans in Gbarnga,” he said.

Mr. Minor also revealed that the LBDI Ganta branch is rendering services in six major towns and metropolis in Nimba County including Ganta City. The cities are Saniquellie, Tapita, Yekepa, Saclepea, Karnplay and Gbahn all in Nimba County. The Ganta branch manager disclosed that LBDI has plans to approve in two weeks, additional loans for small- and medium-size businesses in Saniquellie and Yekepa. He, however, pointed out that the US$100,000 given recently by LBDI for the modernization and expansion of Hotel Alvino is not part of the L$10.8 million loans the bank had disbursed to the 31 businesses in Nimba and Bong counties. “The Hotel Alvino project is our single major investment in Ganta,” said Mr. Minor, noting that the bank is studying several other projects for possible investment in other parts of Nimba. He revealed that the LBDI management and Mittal Steel had reached an agreement where the bank is rendering payroll services to the company's employees and giving them (employees) loans.

According to Mr. Minor, four out of the 31 businesses benefiting from the bank's loans in Ganta and Bong had completed their repayments in full and were benefiting from the second circle. He indicated that though there are high risks surrounding the program in the rural areas, repayment of loans are encouraging. The young banker, however, noted that the banking industry is embroiled in a major challenge as many business people continue to confide in local credit unions and savings clubs other than the banks. He called on the general public and business persons in Ganta to build confidence in the banking sector as well as open accounts with it.

At the close of our discussions with Mr. Minor, this columnist came across Mrs. Bessy Gegbeh, proprietor of Planet 44, one of the leading night clubs and discos in Ganta City. Mrs. Gegbeh's Planet 44 is one of many young Liberian businesses that are benefiting from the LBDI's loans program.

She disclosed that she was given US$5,000 loan by the LBDI to improve and expand her business.

Mrs. Gegbeh expressed happiness about the loan and promised to open a branch of her club in Zwedru, Grand Gedeh County, after taking another loan from the bank. “My husband is unemployed and this business is doing everything for our family,” she stressed.

She disclosed that she had built her own house in Paynesville City, Montserrado County, as a result of her business in Ganta.

Also speaking was Mr. Madison Gausi, proprietor of Wingus Business Center in Ganta City. Wingus Business Center is a general merchandise business.

Mr. Gausi told this columnist about the level of achievements he had recorded as a result of the capitalization of his business by loans from LBDI. The Liberian businessman revealed that he had built housing estates in Monrovia and constructed modern buildings in Nimba and other parts of the country.

He appealed to Liberians to get into business but warned them to go through business workshops to learn how to manage their businesses. Mr. Gausi also appealed to LBDI to increase the loans payment period from six months to at least 12 months.

Another business entity benefiting from LBDI's loans program is the J. J. Brothers Business Center in Ganta City. The business is owned and operated by Mr. Othello Johnson who told this columnist that his business is faring well in the city. He disclosed that he usually imports most of his goods from neighboring countries. The J. J. Business Center deals in slippers and retail gasoline on the market.

For his intervention, the proprietor of His Grace Business Center in Ganta, Paul Zoepeawon, thanked the LBDI for the US$10,000 loan and said that the loan had boosted his business. He promised not to go to local savings clubs because, according to him, the clubs give loans for a 25 percent interest rate while the LBDI loaned money for a 12 percent rate.

Mr. Zoepeawon called on other Liberians in business to take advantage of the bank loans instead of the club loans. He repeated calls by his colleagues in the LBDI to increase the repayment time from six to 12 months.