SMEs to access $3M zero-interest loans without collateral through new development bank – Pres Ali

…preferential interest rates unlock financing up to $10M
President Dr Irfaan Ali announced on Wednesday that, starting in 2026, small and medium-sized enterprises (SMEs) will be able to access loans of up to $3 million at zero interest and without collateral through the new development bank.
The Head of State made the disclosure during his national address at the Arthur Chung Conference Centre, Liliendaal, Greater Georgetown, outlining sweeping reforms aimed at expanding financial inclusion, entrepreneurship and economic empowerment.

According to President Ali, the proposed SME bank will be distinct from traditional microfinance institutions, serving instead as a structured bridge between small businesses and the formal banking system.
In fact, under the new framework, small business owners will be eligible for loans of up to $3 million with zero interest and no collateral requirements. President Ali said this measure is designed to remove long-standing barriers that have locked thousands of entrepreneurs, particularly young people, out of the financial system. Beyond the initial zero-interest loan, SMEs will be able to access an additional $7 million through a preferential financing mechanism, bringing total available financing to $10 million.
“This bank will not be an ordinary microfinance institution,” Ali said. “It will be a lifeline for innovation, growth and continued empowerment. It is a stepping stone into the formal banking system… In the past, many young people would have been denied access to financing because they lacked collateral or a formal business plan,” he noted. “You no longer have to worry about that.”
According to the Guyanese leader, the Government has already reached agreement with commercial banks to unlock significant volumes of capital for SMEs at subsidised interest rates as low as 3.5 per cent.
This will be supported by fiscal concessions granted to commercial banks – similar to those provided for low-income housing – to encourage lending to small businesses.
“The SME bank will also help co-finance operations with traditional banks, allowing businesses to scale up and transition fully into the formal banking system,” the President explained.

Remove remaining barriers
Ali said technical teams and a board of directors will be appointed to ensure the SME bank operates with strong governance and accountability.
Meanwhile, to widen access, the Government will also establish agent banking networks in remote communities, expand digital banking and mobile wallets, and modernise payment systems nationwide.
Legislative and regulatory reforms will also be introduced to remove remaining barriers to lending by both banks and non-bank financial institutions.
The President further announced plans to modernise the Bank of Guyana over the next five years, positioning it as a proactive, data-driven institution fit for the digital age while safeguarding price stability and exchange rate resilience.
He also outlined proposals to broaden wealth creation through capital market instruments, including a junior stock exchange to allow small and emerging companies to raise capital under less stringent requirements, investment vehicles enabling citizens, including the diaspora, to invest in major projects for guaranteed returns and expanded opportunities for equity and fixed-income investments such as bonds.
“These initiatives are designed to create a powerful ecosystem where financial knowledge, access to capital and investment opportunities converge,” President Ali said.
He stressed that the overarching goal is to ensure that economic prosperity is widely shared and deeply inclusive, giving every citizen the opportunity to participate meaningfully in Guyana’s development.