Dominica’s government is expanding its successful micro, small and medium enterprise (MSME) financing initiative, adding an additional EC$19 million in low-interest concessionary funding that will become accessible to local entrepreneurs starting this December. The announcement was made by Finance Minister Dr. Irving McIntyre during his presentation of the 2026-2027 National Budget to Parliament this Tuesday.
Under the expanded programme, the additional capital will be channeled through the AID Bank, which will manage direct lending to eligible MSMEs across the country. Dr. McIntyre outlined that the loan terms have been intentionally crafted to reduce financial strain for growing and emerging businesses: borrowers will pay a fixed 3.5 percent interest rate calculated on a reducing balance, with repayment windows stretching up to 10 years and a six-month grace period that covers both principal and interest payments.
“These terms are designed to protect cash flow when a business is most vulnerable: during start-up or expansion,” Dr. McIntyre told lawmakers, emphasizing that the flexible structure addresses the unique financial challenges new and growing businesses face in their early stages.
This new injection of funding builds on the success of the initial EC$27.8 million MSME Loan Facility, which supported 554 local businesses before all allocated funds were fully committed by March 31, 2026. Beneficiaries of the first round of funding spanned a wide range of key Dominican economic sectors, including agriculture, tourism, transportation, manufacturing, and various service industries.
Dr. McIntyre noted that the rapid full uptake of the first programme’s funding sends a clear signal: local entrepreneurs are eager and ready to scale their operations when affordable, accessible financing is made available to them. He added that the Dominican government positions MSMEs as a foundational pillar of the national economy, critical to both boosting employment rates and advancing long-term economic diversification.
“These businesses are not on the margins of the economy,” McIntyre said. “They are often where Dominicans earn their first wage, develop an idea, and build a livelihood.”