GBTI lauds new legislation that makes access to loans easier for SMEs

The Guyana Bank for Trade and Industry (GBTI) has welcomed the recent passage of new legislation that paves the way for small and medium-scale enterprises (SME) to easily access loans by using movable assets.
On Wednesday, the National Assembly approved the new Security Interests in Moveable Property Bill 2024 – a critical piece of legislation that seeks to foster financial inclusion and empower SMEs.
During her presentation, Tourism, Industry and Commerce Minister, Oneidge Walrond, explained that the bill will resolve the hesitancy of small business owners being able to access loans due to the insufficiency of immovable properties.
“The bill simplifies the process of using moveable assets as collateral for secured credit, making it more accessible to a wider range of businesses…These include tangible assets like equipment, inventory, crops, livestock and vehicles, as well as intangible assets like receivables, intellectual properties and negotiable instruments,” the Minister stated.
In a statement on Friday, GBTI applauded the new legislation, which it said will facilitate easier access to loans for SMEs.
“This development is a significant step forward in empowering entrepreneurs and fostering sustainable economic growth in Guyana. As a longstanding supporter of SMEs, GBTI recognises the vital role these businesses play in creating jobs, driving innovation, and contributing to local communities,” the bank stated.
According to the bank, this new legislation aligns with the bank’s own mission to provide accessible and flexible financial solutions that help businesses grow and thrive.
The cornerstone of its SME support is GBTI GROW – a dedicated branch and suite of products/loans catering to the unique needs of SMEs. Established last month at the bank’s Mon Repos, East Coast Demerara (ECD) location, GBTI GROW bridges the gap between entrepreneurs and accessible financing, offering specialised services designed to empower local businesses to scale and succeed.
“We are excited about this new measure to make financing more accessible to SMEs, which will undoubtedly enhance their capacity to contribute to Guyana’s economic diversification,” GBTI‘s CEO, Shawn Gurcharran, stated.
He added, “With GBTI GROW, we have reaffirmed our commitment to the SME sector, offering tailored financial solutions, expert guidance, and a range of resources to help entrepreneurs achieve their goals.”
Through GBTI GROW and broader SME banking services, the local bank offers loan products for SMEs, including working capital loans, equipment financing, and project financing, tailored to meet specific business needs. It also has business advisory services that help entrepreneurs with business planning, financial management, and growth strategies.
Additionally, GBTI also offers flexible collateral requirements, making it easier for SMEs to access financing as well as a dedicated Relationship Manager who provides personalised support to business owners to navigate the financial landscape. At the bank, there are also networking opportunities, connecting SMEs with key stakeholders and industry professionals to foster growth and collaboration.
“We understand the challenges faced by SMEs in securing financing and are eager to work collaboratively with stakeholders to ensure that this initiative translates into meaningful support for entrepreneurs across Guyana.”
“GBTI stands ready to partner with business owners, Government agencies, and other financial institutions to deliver solutions that will enable our SMEs to prosper and drive Guyana’s economic transformation,” Friday’s missive from the bank stated.
The Security Interests in Moveable Property Bill, which was passed with the support of the parliamentary opposition, creates more opportunities for financing and ensures consistency, transparency and legal certainty in credit markets by streamlining a secure transaction system.
It consolidates previous mechanisms for securing credit such as bills of sale, finance leases and pledges of goods. All these mechanisms are contained in a single legal device called “security agreements.”
A security agreement is a consensual agreement that secures payment or performance of obligations. It eliminates redundancies, reduces administrative burdens and ensures a coherent legal framework for secure transactions in the country.
The registration of the moveable property is managed through an electronic track register maintained by the registrar. According to the Minister, the Security Interest in Moveable Property 2024 will bring a safe change in the commercial industry.
“It will remove key constraints that have confronted thousands of Guyanese citizens and small businesses. It opens up avenues of credit previously unavailable to them,” Minister Walrond had informed the National Assembly.