Pres Ali signs Guyana Development Bank Act into law

– SME business owners to soon start accessing financing

President Dr Irfaan Ali on Thursday assented to the Guyana Development Bank Act 2026, paving the way for existing and aspiring Guyanese small business owners to start accessing financing and other support services.

The Act, which was passed in the National Assembly on Monday, establishes the Guyana Development Bank and outlines the main elements of the legal, institutional, and administrative framework within which the Bank will operate.
The passage of the law sets the stage for the commencement of the Bank’s operations, which will see loans of up to $3 million being provided to small and medium-sized enterprises (SMEs) across a wide spectrum of sectors, free of collateral and interest.
Additionally, the Bank will provide critical technical and advisory support to the small business community, thereby helping them to prepare business plans, manage their finances, and grow their businesses to eventually graduate into eligibility for financing from the formal banking system.
Piloting the bill in the National Assembly, Finance Minister Dr Ashni Singh said that the Bank’s operationalisation will unleash a whole new wave of entrepreneurship across Guyana. He explained that the Development Bank would primarily serve entrepreneurs who have traditionally experienced difficulty obtaining financing through commercial institutions.
“What this bill seeks to do… is to facilitate our smallest and most vulnerable businesses being able to access financing for good business opportunities, unlocking, therefore, a wave of entrepreneurial activities,” Minister Singh noted.
During Monday’s parliamentary sitting, the Guyana Development Bank Bill was quickly approved as the Opposition bypassed participating in the debate and instead protested while Government parliamentarians argued that the new institution would help bridge long-standing financing gaps that have prevented many Guyanese from fully participating in the country’s unprecedented economic expansion, while also targeting underserved borrowers, including women, young entrepreneurs, rural producers, and hinterland communities.
Throughout the debate, Government members described the proposed Development Bank as a key instrument for ensuring that Guyana’s economic growth translates into greater opportunities for ordinary citizens rather than remaining concentrated among larger businesses with easier access to commercial financing.
Culture, Youth, and Sport Minister Charles Ramson Jr said the legislation represented more than the creation of another financial institution. “What we are doing today is more than just a discussion about banking. It is a discussion about how we as a Government… ensure that the promise of economic growth reaches every Guyanese.”
According to Parliamentarian Alistair Charlie, Guyana’s rapid economic transformation has created unprecedented opportunities but has also highlighted significant barriers to financing, particularly for smaller businesses that often struggle to satisfy the lending requirements of commercial banks.
That Guyana continues to attract major investments, undertake large-scale infrastructure projects, and witness the emergence of new industries was highlighted by Minister of Public Service and Efficiency, Zulfikar Ally, who lamented that, however, access to affordable financing remains uneven.
“The fact is our economy shows no sign of slowing down under a PPP/C (People’s Progressive Party/Civic) Government, and as we continue to grow and expand, it is our duty as a Government to be intentional about making sure that this growth is inclusive, productive, and broad-based,” he said.
Ally also underscored that the effectiveness of the Development Bank should not be measured simply by the value of loans approved but by the broader economic impact generated through increased entrepreneurship, job creation, and regional development.
“Guyana has the physical space, it has the infrastructure agenda, it has rising household income, it has tens of thousands of newly registered businesses… but it also has a financing gap that, if left unresolved, will limit who participates in the country’s transformation.”
On the other hand, Agriculture Minister Zulfikar Mustapha argued that access to financing has remained one of the greatest obstacles facing small farmers despite their willingness to expand production. “Over the years, we have seen farmers have ideas; they have land, but more importantly, they are short of finance. Many times, when they go to commercial banks, they can hardly get collateral as security,” Mustapha said.
He noted that the Development Bank would provide farmers with opportunities to increase production and contribute to Guyana’s food security ambitions.
“This will be a game-changer for small farmers; it will be a game-changer for farmers in the hinterland; it will be a game-changer for fisherfolk; and it will be a game-changer for agro-processors.” He further argued that easier access to financing would strengthen Guyana’s efforts to become a leading food producer within the Caribbean while helping small manufacturers and agro-processors expand their operations.
Moreover, Tourism, Industry, and Commerce Minister Susan Rodrigues described this initiative as not just the creation of another financial institution but the creation of opportunities to empower ordinary Guyanese.
“We have listened to the young entrepreneur with a promising business idea but no collateral. We’ve listened to the woman seeking to expand her small business and the farmer seeking to increase production. This bill is our response,” Rodrigues stated.
The Guyanese Government has pledged some $40 billion (US$200 million) for the establishment and operationalisation of the Guyana Development Bank, in keeping with a promise in the PPP/C 2025 Manifesto. Provisions were made for more capital to be injected into this financial institution in the future. Already, approximately $20 billion (US$100 million) has been set aside in Budget 2026 for the Bank for when it comes into operation.