Entrepreneurs with business projects requiring more than G$3 million will still be able to seek support through the Guyana Development Bank, as the institution is working with commercial banks to provide access to additional financing.
Minister of Public Service, Government Efficiency and Implementation, Zulfikar Ally, said persons with strong and bankable business ideas should not view the development bank’s G$3 million loan limit as a barrier.
“If you have a very bankable idea, if you have a very good business idea that you want to implement and it’s more than G$3 million that you need, still come into the bank because we are working with other commercial banks as well,” Ally said during an interview.
He explained that an entrepreneur could potentially access G$3 million from the Guyana Development Bank and an additional G$7 million from a commercial bank to finance a G$10 million project.
The minister noted, however, that financing provided by commercial banks may attract interest and could require collateral, depending on the amount being borrowed and the lending institution’s requirements.
He said there may also be instances where the G$3 million obtained from the development bank could be considered as part of the security for additional financing from a commercial bank.
According to Ally, discussions with commercial banks are continuing, with the aim of creating a seamless and digitally accessible process for borrowers. He said applicants are expected to be able to monitor loan disbursements and repayments using mobile devices.
The minister also encouraged entrepreneurs to consider forming partnerships or consortiums to undertake larger projects.
He gave the example of 10 persons each accessing G$3 million in zero-interest, zero-collateral financing, allowing the group to combine G$30 million for an investment such as a tourism villa or value-added manufacturing plant.
Ally said the government would assist groups with establishing the necessary structures, including bylaws and governance arrangements. He stressed that each member of a consortium would remain responsible for the loan taken in their name.
The minister said the bank is intended to simplify access to financing for young people, women, single mothers and persons with disabilities, while maintaining transparency and accountability.
He encouraged persons with business ideas to begin putting those concepts into writing and developing sound business plans ahead of the bank’s rollout.
The legal framework to govern the development bank was recently passed by the National Assembly, and the government is now working to establish offices in each administrative region while also hiring the requisite staff.