Legislation to establish a Small and Medium Enterprises (SME) Development Bank has been drafted and is currently under review by the Attorney General’s Chambers.
The proposed bank, supported by a US$100 million allocation in the 2026 national budget, is expected to provide small business owners with collateral-free and interest-free loans of up to G$3 million.
Once established, the institution will be administered by the Ministry of Tourism, Industry and Commerce.
Tourism, Industry and Commerce Minister Susan Rodrigues said the bank is expected to be operational this year and will offer both financing and technical support to small and medium-sized enterprises.
“The legislation has been drafted and is currently under review with the Attorney General’s Chambers,” Rodrigues said, adding that the framework will be tabled in the National Assembly once finalised.
The bank will also facilitate co-financing arrangements with commercial lenders at preferential rates, allowing businesses to access additional capital as they expand.
The initiative aims to address longstanding barriers to SME growth, including high borrowing costs and stringent collateral requirements.
By combining financing with mentorship and technical guidance, the government aims to improve regulatory compliance, strengthen financial management and support sustainable business development in sectors such as tourism, agriculture and services.
Small businesses have historically faced limited access to financing. Existing support mechanisms, including those offered by the Small Business Bureau, have focused on grants, loan guarantees and training.
The proposed development bank marks the government’s first large-scale effort to provide direct financing alongside long-term business support.
