The Government of Guyana has taken a major step to strengthen support for small businesses and aspiring entrepreneurs by introducing the Guyana Development Bank Bill 2026 to the National Assembly.
The proposed legislation, tabled on Friday by Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, seeks to establish a dedicated development bank to expand access to affordable financing and to stimulate entrepreneurship across the country.
The Guyana Development Bank is expected to play a key role in broadening economic participation by providing micro-credit loans of up to $3 million at zero per cent interest. In addition to financing, beneficiaries will receive business mentoring, training, and technical support to improve sustainability, strengthen management practices, and increase the success rate of new and existing enterprises.
The initiative forms part of the People’s Progressive Party/Civic (PPP/C) Government’s wider strategy to build a more inclusive economy by ensuring that citizens from all regions and backgrounds have access to opportunities for business ownership, investment, and wealth creation.
President Dr Irfaan Ali recently emphasised the importance of the new institution during a Cabinet outreach in Region Seven, explaining that the Development Bank will help individuals and communities to start businesses, expand operations, and collaborate on larger commercial ventures.
According to the President, the bank will provide soft financing tailored to the needs of ordinary Guyanese, enabling entrepreneurs to invest in productive activities and encouraging groups and community-based consortia to undertake larger-scale projects that generate employment and economic growth.
The establishment of the Development Bank also fulfils a key commitment set out in the PPP/C’s election manifesto, which pledged to expand access to financing, savings, and investment opportunities for citizens across the country.
Government officials have consistently emphasised that access to affordable credit remains a key factor in supporting entrepreneurship, creating jobs, and driving long-term economic development. The new institution is expected to complement existing financial services by focusing on development lending and on underserved segments of the economy.
The move comes at a time when Guyana’s financial sector continues to demonstrate strong growth and stability. Over the past five years, lending to the private sector has expanded significantly, reflecting increased economic activity and rising confidence among businesses and investors.
Between the end of 2020 and the end of 2025, credit extended to the private sector more than doubled, rising by 104.7 per cent. Growth was recorded across major sectors, including agriculture, manufacturing, mining and quarrying, services, and real estate development. Mortgage lending also expanded substantially over the same period.
The banking sector has also benefited from rising economic activity, with commercial bank deposits increasing by 132.8 per cent between 2020 and 2025. This growth reflects higher disposable incomes, stronger business performance, and greater confidence in the country’s financial institutions.
At the same time, the quality of bank lending has improved markedly. The ratio of non-performing loans fell from 10.8 per cent at the end of 2020 to just 1.3 per cent by the end of 2025, reflecting stronger financial management, improved economic conditions, and better lending practices across the banking system.
The Government believes these positive trends provide a strong foundation for establishing the Guyana Development Bank and position the institution to play a meaningful role in supporting entrepreneurship, expanding access to capital, and enabling more Guyanese to participate in the country’s rapidly growing economy.
Through the proposed Development Bank, the administration aims to create new pathways to economic empowerment and to support sustainable business development, job creation, and long-term national prosperity.