The government is advancing its plans to establish the Guyana Development Bank to help small and medium-sized businesses access financing, build capacity and expand their operations. The proposed legislation for the institution was laid in the National Assembly on June 15.
The bill outlines a framework that could transform access to capital for thousands of entrepreneurs, particularly those who have traditionally struggled to secure financing through commercial banks.
With an initial funding of $40 billion, the bank will not only provide loans but also offer technical support, mentorship and financial literacy training, aimed at strengthening businesses and creating new opportunities for economic growth.
Here’s what you need to know about the Guyana Development Bank Bill 2026:
What is the purpose of the Guyana Development Bank?
The bill states that the bank’s primary objective is to facilitate the establishment and growth of small and medium-sized enterprises (SMEs) across Guyana. In carrying out its mandate, the bank will be required to consider national development priorities, financial sustainability and sound risk management practices.
What services will the bank provide?
The Bill empowers the bank to:
- Provide loans to small and medium-sized businesses, with or without collateral.
- Offer loans with or without interest
- Partner with commercial banks, financial institutions and development agencies to co-finance projects
- Provide technical, managerial and advisory support
- Offer mentorship and capacity-building programmes
- Promote financial literacy and business education.
- Encourage the formation of business clusters/partnerships among enterprises receiving support
Will it operate like a commercial bank?
The bank will not operate like a commercial bank which accepts deposits from the public. The proposed law also seeks to restrict the bank from any form of speculative trading or activities that are not in keeping with its mandate.
Who will oversee the bank?
The bank will be governed by a Board of Directors, comprising at least five appointees. It can have a maximum of nine members. Board members, including the Chairperson and Deputy Chairperson, will be appointed by the Minister of Finance based on their qualifications and experience. Each director will serve a three-year term and may be reappointed. Their appointments will also be published in the Official Gazette.
What will the Board be responsible for?
The Board will be responsible for approving the bank’s business plans; approving credit, risk and governance policies; safeguarding the independence of lending decisions; overseeing management performance and ensuring overall compliance with the law.
What happens if a director abuses their position?
Under the proposed law, directors can be removed if they abuse their position for personal gain. They can also be removed if found guilty of misconduct, neglect of duty or conflict of interest.
Who will manage the bank’s day-to-day operations?
The Board will appoint a Chief Executive Officer (CEO), who will be responsible for the day-to-day management of the institution. The CEO will have authority to represent the bank in dealings with the government and other institutions, sign contracts and official documents and delegate certain responsibilities to other officers.
How much money will the bank have?
The proposed law provides for an initial start-up funding totalling $40 billion. However, the Minister of Finance can seek approval from the National Assembly to increase or amend that amount in the future.
What is the maximum amount a business can borrow?
The bill states that the bank will not be permitted to provide loans exceeding $3 million to any individual or enterprise. It however, allows the Minister of Finance to seek approval from the National Assembly to amend that limit if necessary.
How can businesses access loans?
The specific application procedures are not outlined in the bill. It does note, however, that the bank will specify the information, supporting documents and statutory declarations required from applicants.
What happens if a person or company misuses the bank’s funding?
The proposed law deems the misuse of the bank’s funding as an offence. Others listed include :
- Providing false or misleading information to the bank
- Obstructing or hindering the bank in carrying out its functions
- Falsifying, concealing, altering or destroying records related to the bank
- Improperly disclosing confidential information
Individuals convicted of these offences could face fines ranging from $5 million to $10 million.
Companies found guilty could also be fined between $5 million and $10 million. Additionally, directors, managers, secretaries or other officers may be held personally liable where an offence is committed with their consent, connivance or negligence.