As part of the Government’s agenda to improve access to financing, Senior Minister in the Office of the President with Responsibility for Finance Dr. Ashni Singh yesterday signed a $100 million loan agreement with the Small Business Development Finance Trust Incorporated (SBDF).
A release from the Ministry of Finance said that the signing of the agreement follows discussions between President Irfaan Ali and representatives of SBDF.
The $100 million financing facility will be utilised by the SBDF through the provision of loans at no more than 8 percent interest rate to individuals or companies wishing to develop and expand their small or medium enterprises.
The Agreement was signed by the finance minister and Chairman of SBDF, Sattaur Gafoor in a ceremony at the Ministry of Finance. Witnessing the signing were Minister of Tourism, Industry and Commerce Oneidge Walrond and representatives of SBDF.
Dr. Singh noted that the SBDF, the brainchild of Gafoor, was founded in 2002 and became operational in 2003.
“It started with a capital base of $21 million of which Mr. Gafoor contributed $11 million and then President Jagdeo on behalf of the Government of Guyana contributed $10 million and with that total capital of $21 million, the SBDF embarked on this journey of providing support to the smallest of entrepreneurs in Guyana,” Dr. Singh said.
He added that since its establishment the SBDF has disbursed 6,835 loans at a total value of $4.5 billion dollars.
According to the release, Walrond said “Today we are adding one more arrow in the quiver or tool in the tool-kit of our mechanisms that we are implementing as Government to support small businesses”.
She adverted to her ministry’s Small Business Bureau (SBB) established under the Small Business Act to help carve out support for small businesses.
She noted that there is a loan guarantee programme under the SBB where Government acts as a guarantor for small businesses facilitating loans for them at commercial institutions.
“This loan facility will complement and not compete with the efforts of the Small Business Bureau which offers a maximum of $500,000,” Walrond added.
According to the release, Gafoor said he considers it an honour that Government has partnered with the entity to lend the SBDF $100 million to assist small businesses, which he noted will go a long way in assisting the fund.
“The SBDF has grown over the years meeting a cross-section of demands, more particularly those persons involved in agriculture, and this will most certainly help in meeting those demands,” he added.
