The Small Business Association of Jamaica (SBAJ) is calling on the island’s banking sector to reduce the interest rate on loans offered to entrepreneurs.

The call follows an announcement from the Bank of Jamaica (BOJ) that its policy interest rate offered to deposit-taking institutions on overnight placements with the central bank will be maintained at 5.75% per annum.

Speaking to IRIE FM News last evening, SBAJ President Garnet Reid said while the Bank of Jamaica has kept its policy rate steady, an action designed to stabilize borrowing costs and encourage lower lending rates, banks are accused of doing the opposite.

He is calling on the island’s banks to lower interest rates on loans secured by entrepreneurs and not be unconscionable to small business owners.

He is also urging banks to remove the red tape, so that small business owners can have easier access to loans.