Govt inks $100M loan agreement with SBDF to expand small businesses

The Guyana Government has signed a $100 million loan agreement with the Small Business Development Finance Trust Incorporated (SBDF), to promote the development and expansion of small and medium enterprises.
The loan was signed on Friday between Finance Minister, Dr Ashni Singh and Chairman of SBDF, Sattaur Gafoor in the presence of Commerce Minster Oneidge Walrond and other officials.
The loan will be used to finance individuals or companies wishing to develop and expand their operations, with loans at no more than eight per cent interest rate.
Industry and Commerce Minister Oneidge Walrond explained that this is yet another mechanism to support small business development. The Trust was chosen, she noted, since it sports a remarkable track record of supporting businesses in its 20-year existence.
“This loan facility will complement and compete with the efforts of the Small Business Bureau. We’re primarily extending grants. The maximum that can be given is $500,000. The Trust will now be extending loans that can be larger than the SBB can award,” she said.
According to Gafoor, the loan will significantly assist stakeholders in the agriculture sector.
“It is not a paltry sum and above all, at the concessionary rate of four per cent. This would go a long way to assist small farmers, a number of whom are increasing for loans. This would really assist us in meeting those demands,” Gafoor outlined.
However, Dr Singh explained that the Government is pressing aggressively to support persons financially to kickstart their small business enterprises. According to him, this grant is the latest instalment of these ongoing efforts.
“Every single small business, if well managed, has the potential to grow, and to expand, and to prosper. Step by step, block by block, that is the environment that President Irfaan Ali is endeavouring to create; an environment where every Guyanese person who wishes to set up a small business is able to do so and is operating in conditions where the business can grow, flourish, prosper and expand.”
Since its establishment, the SBDF has disbursed 6835 loans at a total value of $4.5 billion, having started in 2002 with a capital base of $21 million – $10 million of which came from the Government. The Trust also provides mentoring and advisory support services to small operators.
The Small Business Bureau is continuing work on its part to issue grants. In 2022, the Bureau surpassed its grant distribution target by 631.
The agency had a budgetary allocation for the sum of $300 million for the distribution of 800 small business grants. However, by the end of 2022, it had distributed a total of 1431 grants. The SBB Fund has grown significantly since 2020. In the 2020 and 2021 budgets, the respective sums of $100 million and $250 million were approved.
Just recently, Vice President Bharrat Jagdeo indicated that over 700 small business owners from across the 10 administrative regions will soon receive grants from the Bureau to help them grow their enterprises and achieve sustainability.
To benefit from grants under the SBB, businesses must be compliant with all the requirements, including being registered with the Deeds and Commercial Registry, the Guyana Revenue Authority (GRA) and the National Insurance Scheme (NIS). A business plan must also be submitted.
Apart from this, several other mechanisms are in place to support small business owners. In March, a $900 million forestry revolving fund for small and medium-sized loggers was officially launched by Government to support those in the sector. (G-12)