SME Development Bank to Launch by Early 2026
November 14 2025
The government’s long-awaited SME Development Bank—capitalised at a minimum of US$200 million—is expected to become operational before the end of the first quarter of 2026.
President Dr. Mohamed Irfaan Ali made the announcement on Thursday during the opening ceremony of GuyExpo 2025 at the National Exhibition Centre in Sophia, Georgetown.
The bank, a flagship commitment in the PPP/C Administration’s 2025 Manifesto, is designed to expand financial access for Small and Medium-Sized Enterprises (SMEs) and support their long-term participation in Guyana’s economic transformation.
President Ali said preparatory work has already begun, with administrative, legal, and regulatory frameworks currently being developed. One of the institution’s hallmark features will be a zero-collateral, zero-interest loan system, with specific loan thresholds to be outlined in Budget 2026.
The president noted that this approach is intended to eliminate one of the biggest obstacles facing small businesses.
President Ali also announced a new incentive regime aimed at encouraging commercial banks to increase SME lending. Under the initiative, banks will receive benefits similar to those used in the housing sector, provided they lower interest rates to below four percent and ease collateral requirements.
The SME Development Bank will prioritise agriculture and agro-processing, tourism and hospitality, services, creative industries, and other value-added and innovation-driven sectors. The president said these measures are expected to create thousands of new business opportunities while supporting national efforts to diversify the economy beyond oil and gas.
