Guyana passes development bank law offering zero-interest loans for small businesses

Guyana’s National Assembly on Monday passed legislation establishing a Development Bank that will provide eligible entrepreneurs with loans of up to G$3 million at zero interest and without collateral. The Guyana Development Bank Bill was piloted by Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, and approved by the government majority after opposition Members of Parliament declined to participate in the debate while protesting in the chamber over the MV Barima disaster. Finance Minister Dr Ashni Singh (Photo: Parliament Office/ Facebook/ February 6, 2026) Highlighting the important role of local enterprises during his presentation of the Bill, Minister Singh emphasized that “small and medium-sized businesses have been the lifeblood of the Guyanese economy since time immemorial. These small businesses, in addition to providing essential goods and services, have proven over the decades and centuries to be an essential source of economic livelihood for Guyanese men, women, and families throughout the economic history of our country.” Speaking in support of the bill, Minister of Public Service, Government Efficiency and Implementation Zulfikar Ally said the bank would address longstanding barriers to finance for entrepreneurs who lack the collateral or credit history typically required by commercial lenders. Minister of Public Service, Government Efficiency and Implementation Zulfikar Ally Ally said the institution’s “first and perhaps most transformative feature” would be zero-interest, zero-collateral loans of up to G$3 million for eligible borrowers. Applications would be assessed on cash flow and business viability rather than traditional collateral requirements, while maintaining governance and risk management safeguards. Under a co-financing mechanism, beneficiary SMEs and entrepreneurs would be able to unlock additional financing of up to $7 million at favourable interest rates. Notably, the Bank’s operational design would promote community development by facilitating the organisation of beneficiaries into clusters, offering opportunities for scaling, specialisation and risk management. The bank will target micro, small and medium-sized enterprises, including first-time entrepreneurs, women-owned businesses, youth entrepreneurs, sole traders and persons with disabilities. In addition to financing, it will provide business training, mentorship and technical support. Under a co-financing mechanism, beneficiary SMEs and entrepreneurs would be able to unlock additional financing of up to $7 million at favourable interest rates. Notably, the Bank’s operational design would promote community development by facilitating the organisation of beneficiaries into clusters, offering opportunities for scaling, specialisation and risk management. According to Ally, the bank will focus lending on sectors including agriculture, agro-processing, manufacturing, tourism, services and technology, while operating under a governance framework intended to avoid the shortcomings that contributed to the collapse of the former Guyana Co-operative Agriculture and Industrial Development Bank (GAIBANK). In a release, the Ministry of Finance said: “The Bank builds on a number of predecessor institutions and initiatives advanced by the PPP/C to improve access to financing by local businesses and provide economic empowerment for individuals and households. Included among these are: the Small Business Bureau, which has provided grants, disability loans, guarantees, training and other services to nearly 22,000 individuals from 2020 to current, to the tune of more than $2.7 billion; and a partnership with IDB Invest through which Guyanese businesses were able to access more than US$260 million in financing since 2020. In addition, the Local Content framework has allowed more than 1,200 registered Guyanese businesses to benefit from the procurement of over US$2 billion in goods and services across 40 sectors.” The bill was passed as opposition MPs declined to take part in the debate on the legislation.