–as house clears funding to improve access to financing for small businesses
MINISTER of Tourism, Industry and Commerce, Susan Rodrigues has confirmed that work is under way to operationalise the much-anticipated Guyana Development Bank, which will provide collateral‑free, interest‑free loans to small and medium‑sized enterprises (SMEs).
We Invest in Nationhood (WIN) Member of Parliament, Tabitha Sarabo‑Halley, in the Committee of Supply on Tuesday pressed the minister on whether legislation would be required before the bank becomes operational.
In response, Minister Rodrigues said the initiative stems from the government’s 2025 manifesto commitment to establish such an institution. She explained that the current budget makes provision for an initial US$100 million, as part of a US$200 million capital pledge.
“For time immemorial, small and medium-size enterprises have complained about one major challenge, and that is access to finance,” she said.
The minister stressed that the bank will be established as a legal entity, with the Attorney General’s Chambers currently working on the required legislation.
Once in place, the bank will offer collateral‑free, interest‑free loans of up to $3 million, with the possibility of an additional $7 million in financing from commercial banking institutions at preferential rates.
Minister Rodrigues added that the bank’s mandate will go beyond simply disbursing funds.
According to her, it will also support entrepreneurs in drafting proposals and will provide training and upskilling to ensure that beneficiaries are better equipped to build sustainable businesses and move beyond “the dream of just having a small business.”
She said what is interesting and important to note is that the bank will also be helping entrepreneurs to draft their proposals. “There will be a training component and upskilling components so that we can help them to access that $3 million, potentially access the additional $7 million,” she said.
She noted that the initial $100 million allocation must be expended before the end of the year according to the government’s work plan, and said operationalisation would proceed “at the earliest opportunity”.
President Dr. Irfaan Ali back in 2025 had said a special incentive regime will be introduced to encourage commercial banks to expand lending to small and medium-sized enterprises (SMEs), mirroring the incentives offered to banks in the housing sector.
In return, commercial banks will be required to lower interest rates to below four per cent and reduce collateral requirements for SME borrowers.
Vice-President, Dr Bharrat Jagdeo in addressing the initiative had previously said that the concept of a development bank emerged from years of surveys, consultations, and informal conversations with citizens across the country.
It was within this context, he explained, that the People’s Progressive Party/Civic (PPP/C) government concluded that a good starting point was ensuring businesses have access to capital.
“We will ensure that the formal banking system is reformed in a way that they can have easier access to capital and a greater margin,” Jagdeo said, adding that government is also working to modernise the wider financial sector.
The government will work with the banking system to develop a range of instruments such as discounting trade invoices to ensure Guyanese can use the banking system to support their businesses.
For those who may not qualify through commercial banks, the new development bank will provide an alternative path to realise national economic opportunities.
