The Small Business Bureau (SBB) is still trying to get other commercial banks to come onboard with its programme to help finance ventures by new and small entrepreneurs, as it disclosed that only 50 per cent of the loan applications are currently being approved.
Despite having less than half percent delinquency in loan repayments by small businesses, Chief Executive Officer of the Small Business Bureau Dr Lowell Porter lamented that a significant amount of loan applications are being rejected.
“Small Business Bureau does not lend any money. We do not have a lending program so all loans are done by the banks and there are only two commercial banks in Guyana that supports the program and those banks are the ones who have the final decision who gets the loan and how much they get. It has nothing to do with us. We just prepare the client and we put them in front of the banks. That’s all we do. The rejection rate, however, is also very high. Only about 50% of our loans are approved,” Porter said.
The two commercial banks currently on board the Bureau’s program are Republic Bank Limited and the Guyana Bank for Trade and Industry (GBTI).
According to the CEO, they had approached the other banks to join the programme but have been unsuccessful so far.
Nevertheless, Dr Porter said that the Bureau will continue to work with its clients to ensure that they maintain the half percent delinquency rate on loans.
Currently, the Small Business Bureau have facilitated some $1B in loans that have been approved for clients since 2014.