Commencement order signed, clearing way for Development Bank

… “quantum leap” for SMEs financing – Finance Minister

Ahead of the October 5 commencement of operations, Guyanese looking to tap into the zero-interest and collateral-free financing from the Guyana Development Bank (GDB) are being advised to be prepared.

This follows Finance Minister Dr Ashni Singh on Wednesday signing the Commencement Order to operationalise the Guyana Development Bank. The Order was subsequently Gazetted, paving the way for existing and aspiring Guyanese small business owners to start access financing and other support services.
Wednesday’s signing comes days after President Dr Irfaan Ali announced that the Guyana Development Bank would commence operations on October 5.
Once operationalised, the state-backed financial institution will offer loans of up to $3 million to citizens as well as small and medium-sized enterprises (SMEs) across a wide spectrum of sectors, with no collateral required and free of any interest.

Quantum leap
After the signing, Minister Singh called on Guyanese to be prepared to access financing opportunities from the development bank.
“The opening of the Guyana Development Bank will represent a quantum leap in the world of financing for SMEs… I want to urge every potential applicant for them to do their preparatory work, thinking about what can I do, what am I good at? Because you can’t just have an idea, you have to know that it’s something you’re capable of doing, that you have experience on track record and competence of doing, that you’re going to be committed to doing because it’s a loan, you’re going to have to pay back the loan,” he posited during an interview with the Guyana Times.
The finance minister noted that this does not have to be an elaborate business plan but detailed enough to highlight the main tenants of such a plan.
In fact, over the past few months, government teams having been visiting communities across the country to engage citizens on how they can tap into the bank’s financing opportunities as well as benefit from the business support services that comes with it.
With an initial capital of US$100 million (G$20 billion) injected into this bank, the government had stated it is targeting vulnerable groups such as women and young people. However, it was recently noted that plans are being mulled to expand to at least US$200 million, recognising that the bank will help unlock entrepreneurial potential, particularly among young people and community-based enterprises that have traditionally struggled to access credit.

Accepting applications
Minister Singh told this publication on Wednesday that the Development Bank would start accepting applications as soon operations commence on October 5, with plans to process these as fast as possible.
“The objective is efficiency. So, the objective is that as soon as the bank starts operation on [October 5]…that they’ll be able to accept applications and process those in the shortest possible time. The objective is to make this as simple and free of bureaucracy as we possibly can make it. You’re still going to have to meet some requirements and submit some documentation, but our aim is to make this as simple and as accessible as we possibly can,” Dr Singh asserted.
Meanwhile, the finance minister indicated that work is already underway to commence operation in terms of setting up the bank and identifying the necessary personnel including a Board of Directors with members suitably qualified across the fields of finance, economics, banking and law, with the latitude to execute broad management functions.
Back in July, Dr Singh successfully piloted the Guyana Development Bank Bill in the National Assembly.
The Bank is expected to transform the financing landscape for SMEs and entrepreneurs in Guyana, especially to the benefit of women, youth, and persons with disabilities, offering zero-interest loans of up to $3 million with no collateral required. Mentorship and training services would also be provided to ensure beneficiaries are equipped with the requisite knowledge and skills to run successful businesses.
Under a co-financing arrangement, borrowers would be able to unlock additional financing of up to $7 million from traditional lending institutions, at favourable interest rates.
In fact, the finance minister explained during Wednesday’s interview that they would be setting up help desks within various commercial banks’ branches to facilitate that borrowing expansion.
“We’re going to be working in collaboration with the commercial banks so the persons can graduate from the Development Bank onto the full financial system and get perhaps a full loan from the established commercial banks,” he stated.
Further, the Bank’s operational structure would facilitate the creation of consortia among beneficiaries, providing opportunities for scaling, specialisation, and risk-sharing.
The entity’s financial records would be subject to annual examination by the Auditor General, and an annual report on operations would have to be prepared and presented to the people and National Assembly of Guyana.
Establishment of the Guyana Development Bank is a 2025 Elections Manifesto promise of the People’s Progressive Party/Civic (PPP/C) Administration.
This state-back institution comes at a time of rapidly expanding credit, robust and improving credit quality, and growing financial inclusivity. Both private sector credit and commercial bank deposits more than doubled between end-2020 and end-2025, while non-performing loans plummeted from 10.8 per cent to 1.3 per cent.
Since October 2024, more than 179,000 new bank accounts were established, with almost 60,000 opened between April and August 2026 alone, reflecting Government’s ongoing efforts to simplify the process of setting up accounts.
Previous PPP/C Administrations have over the years advanced various institutions and initiatives to facilitate financing and other support for local businesses, headlined by the Small Business Bureau, and a partnership with IDB Invest. Since 2020, the Ali-led Government has disbursed grants, disability loans, guarantees and other services to the tune of more than $2.7 billion, while under the latter, business financing of more than US$260 million was secured.