WASHINGTON — Barbados is enhancing access to finance for micro, small, and medium-sized enterprises (MSMEs) through a US$50 million loan from the Inter-American Development Bank (IDB). This program, supported under the IDB’s Flexible Financing Facility, aims to stimulate productive investments across the MSME sector.
The funding will be used to provide loan guarantees through eligible financial intermediaries, enabling MSMEs to invest in areas such as property, facilities and equipment, infrastructure, and the adoption of new technologies, techniques, or processes.
The program is expected to benefit an estimated 188 firms directly and other suppliers and partners indirectly, and increase economic activity. This loan represents the third of a successful series of projects which has so far helped extend credit to over 170 unique MSME beneficiaries.
MSMEs represent over 90% of formal businesses in Barbados and contribute nearly 60% of private-sector employment. However, many face challenges accessing affordable credit. By reducing the perceived credit risk, the IDB-backed guarantees will allow lenders to offer more competitive interest rates and improved repayment terms. The guarantees will cover up to 80% of a loan, with a maximum of US$1 million per loan.
The program also targets underserved segments, including women-owned or led businesses, exporters, and firms investing in renewable energy, energy efficiency, and climate resilience solutions.
The IDB sovereign guaranteed loan, approved by the Bank’s Board of Executive Directors, has a 25-year maturity, a 5.5-year grace period, and an interest rate tied to the Secured Overnight Financing Rate (SOFR).
About the IDB
The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries.
Nicaretta,Romina Tan

Garcia,Geraldine
