The government’s transformative SME Development Bank, capitalised at a minimum of US$200 million, is set to become operational before the end of the first quarter of 2026.
President Dr Mohamed Irfaan Ali made the announcement during his address at the grand opening of GuyExpo 2025 at the National Exhibition Centre in Sophia, Georgetown, on Thursday.
The SME Development Bank, a key commitment in the People’s Progressive Party/Civic (PPP/C) Administration’s 2025 Manifesto, aims to create financial opportunities for Small and Medium-Sized Enterprises (SMEs) so they can benefit from long-lasting prosperity in Guyana’s development.
“We have started already to put the mechanism in place for the (SME) Guyana Development Bank,” the president told the large gathering, stating that , “the administrative, legal, and regulatory framework is being crafted.”
One of the most impactful features of the soon-to-be established bank will be its zero-collateral, zero interest lending system.
According to President Ali, loans up to a predetermined value are set to be revealed in Budget 2026.
The president explained that these loans will effectively remove the single largest barrier faced by thousands of small businesses.
In another major policy announcement, President Ali said that the government will introduce a special incentive regime to push commercial banks to increase their support for SMEs.
Under this system, commercial banks will receive incentives similar to those already used for housing finance, but with conditions.
In return, banks must lower their interest rates to below 4 per cent and reduce collateral requirements for SMEs, making financing significantly more accessible and more affordable.
President Ali noted that the SME Development Bank will place heavy emphasis on Agriculture and agro-processing, tourism and hospitality, services and creative industries, as well as any activity linked to value creation and innovation.
“This of course will lead to the creation of thousands of business opportunities,” the president underscored.
These sectors are central to the government’s strategy to diversify the economy, boost rural development, modernise production, and generate wealth beyond the oil and gas sector.
