SMEs can access up to $3M interest-free, collateral-free loans through Guyana Development Bank – Pres. Ali
Small business owners will soon be able to access up to $3 million in zero-interest, zero-collateral financing under the Small and Medium Enterprises (SMEs) Bank.
President Dr. Irfaan Ali made the announcement on Wednesday as he outlined the government’s economic and social policy agenda at the Arthur Chung Conference Centre (ACCC).
The Head of State said the bank has now moved beyond a campaign promise, with the administration finalising the legal and administrative framework to launch what he described as the Guyanese Development Bank, capitalised with an injection of US$200 million.
He added that the financing will be geared towards small and medium-sized enterprises, women-owned businesses, young entrepreneurs, and persons living with disabilities, with built-in mentorship and training.
He stressed that the bank is intended to remove the two barriers that commonly lock aspiring entrepreneurs out of credit: collateral and formalised planning, telling citizens, “you no longer have to worry about that.”
Beyond the initial microcredit, Dr. Ali said the facility will also provide a pathway to larger, more conventional financing through a co-financing model. Under that arrangement, entrepreneurs could access an additional $7 million at preferential interest rates, taking total financing to $10 million.
“Further, through the co-financing mechanism, they will have access to an additional 7 million dollars at preferential interest rates, unlocking financing of up to 10 million dollars,” he said. The President added that commercial banks have already signalled agreement to lend to SMEs at subsidised rates “as low as 3.5 per cent,” supported by government concessions similar to those used in low-income housing.
The Guyanese Leader said the bank will target investment in productive and job-creating sectors, including agriculture, tourism and hospitality, manufacturing, technology, and the orange economy, so creatives can “turn their craft into income.”
He also pointed to the planned expansion of a care economy, in which services for the elderly, children, and persons with disabilities can be outsourced, formalised, and monetised.
To ensure readiness, Dr. Ali said preparatory work is already underway. “Work has already begun. Legal and administrative structures are being put in place. Soon a board of directors and a team of experts will start guiding the SMEs in preparing credible business plans and successful loan applications,” he said, promising technical support to help entrepreneurs “convert ideas into a bankable plan.”
He described the institution as more than a lender, positioning it as a bridge into the formal financial system rather than a replacement for it.
“The SME Bank will not be an ordinary microfinance institution, but a lifeline for innovation and growth…” Ali said, adding that it will serve as a “stepping stone” that helps first-time borrowers graduate to commercial banking.
The President also signalled broader financial reforms to widen access nationwide, including agent banking networks for remote communities, digital banking and mobile wallets, and legislative updates to remove remaining impediments to lending.
He said reforms will also be pursued at the Bank of Guyana to modernise operations and better support financial inclusion and innovation while preserving stability.
