Small and medium-sized Enterprises (SMEs) hoping to access financing from the proposed Guyana Development Bank should begin preparing now by formalizing their operations, according to businessman and former Georgetown Chamber of Commerce and Industry (GCCI) President Timothy Tucker.
Speaking on the Starting Point podcast on July 5, Tucker said the new institution is expected to fill a long-standing financing gap between commercial banks and the Small Business Bureau (SBB) by providing concessional funding to businesses that are ready to grow.
He noted that the bank’s proposed microcredit loans could help small businesses transition from informal operations to fully commercial enterprises.
“It’s $3 million, and so, to established businesses, it might be for them to add a piece of machinery or something to their business, but for a small and micro business, that’s quite a bit of money… Here comes the opportunity now to really put those businesses or those ideas on pen and paper, and really go to the bank to get a loan that is not high interest,” he said.
According to Tucker, entrepreneurs should ensure their businesses are properly registered, comply with the Guyana Revenue Authority (GRA) and the National Insurance Scheme (NIS), keep business and personal finances separate, and prepare a bankable business plan.
He said organizations such as the Private Sector Commission (PSC) and SBB already provide free business support services to help entrepreneurs develop loan proposals that meet financing requirements.
“There are many organizations within the country that can help you… There are a lot of products out there that can really help you get yourself in order. So as soon as those gates open at the Guyana Development Bank, you can go right in and secure your financing with a bankable proposal,” Tucker said.
For entrepreneurs planning to apply as partners, Tucker said transparency should be established before seeking financing.
“You can sit down, and you can have a great idea, and you can find the right person. And I think it’s actually part of the bill, in the Development Bank Act, that encourages partnership…So accountability, transparency, and trust are the pillars of your partnership going forward,” he added.
READ MORE HERE: Explained: The proposed Guyana Development Bank | OilNOW
