Gov’t on track to launch interest free financing facility to boost small businesses – Pres Ali

The government is on track to establish an interest-free financing facility aimed at easing access to capital for small and medium-sized enterprises (SMEs).

President Mohamed Irfaan Ali made the announcement at the commissioning of Demerara Bank Ltd new branch at Beterverwagting on Monday.

He said the initiative will remove long-standing barriers that stall business development countrywide.

“Many aspiring entrepreneurs have good ideas, energy, and the willingness to work hard but often lack the financial resources to get started or to expand…In many instances, small businesses are unable to meet the rigid collateral and documentation requirement needed to access even modest loans,” the president explained.

Recognising that commercial banks must prioritise the safety of deposits and the security of loans, an alternative, the president said, is necessary to meet the financial needs of SMEs.

The 2026 National Budget allocated US$100 million to establish the facility and provide seed capital to banks, enabling them to lend to SMEs, including those that have struggled to secure financing through traditional channels.

“This initiative is designed to unlock potential, empower entrepreneurs, and give more Guyanese a fair chance to participate in the country’s economic transformation,” the President emphasised.

The initiative will see the Guyana Development Bank partnering with commercial banks to expand lending opportunities.

With this arrangement, banks will be able to access additional resources and, in effect, function as extensions of the development bank.