The role of CGC is to assist small and medium-sized enterprises (SMEs) especially those with viable businesses but have inadequate collateral or lack collateral to gain access to credit and to assist to promote the development and growth of SMEs.

• CGC helps SMEs by providing guarantee coverage for partially secured credit facilities.
• The various CGC products are designed to assist SMEs obtain financing up to eligible amounts.

• CGC’s credit guarantee scheme is financial arrangement to assist facilitate lending to SMEs that may not have sufficient collateral to obtain traditional loans from financial institutions. The purpose is to mitigate the risk faced by lenders when providing loans to SME borrowers.
• When an SME applies for a loan or any other credit facility from a financial institution and the financial institution assesses that the SME does not have adequate collateral to cover the loan, the CGC guarantee scheme provides the necessary comfort to the lending institutions to enable the SME to obtain financing according to the viability of their business and take full advantage of the value of the collateral offered by CGC through the guarantee scheme.

You qualify if you are a PNG citizen or a PNG owned company

• operating a registered or licensed business in PNG
• The business should be financially viable as assessed by the financial institutions

• A SME must apply for a standard commercial financing facility under normal circumstances by going through a participating financial institution
• The participating financial institution will make an assessment to provide a normal commercial borrowing facility however will consider using the CGC Credit Guarantee Scheme if the business does not have sufficient security or collateral to meet the lender’s normal security requirements.
• In some instances there maybe aspects of the SME’s sector, business model or target market which is perceived as high risk under the lenders normal credit risk assessment processes.
• The decision to grant or not to grant the CGC Credit Guarantee rests solely with CGC based on its own assessment
• CGC does not appoint any third parties / agents to act on its behalf to assist SMEs to obtain financing.

• CGC charges a premium of up to 2% for the provision of the guarantee facility.
• The premium is based on outstanding principal loan balance

CGC’s core business is credit guarantee, which is provided to SMEs with viable business but lack or do not have sufficient collateral and track record to gain access to financing from the financial institutions. Financial institutions, on the other hand, provide loans and other financial services and disburse funds directly to their borrowers.

All registered businesses are eligible to apply for guarantee coverage. However, we appraise the applications based on viability of the business.

Yes. You may submit your application together with the required documents such as proper business plan and realistic cash flow projections acceptable to the financial institutions for consideration.

Below is the list of participation financial institutions

[List FI’s and their websites]