CDB advances MSME financing reform initiative

Published on April 20, 2026

The Caribbean Development Bank is unlocking new pathways to finance for micro, small and medium-sized enterprises (MSMEs) and advance private sector growth in Barbados with a US$560,000 grant to the Government.

The technical assistance project represents a strategic intervention designed to reduce longstanding barriers for MSMEs in accessing finance.

Administered by the Ministry of Energy and Business, the initiative promises to create an enabling environment for movable asset-based financing by modernising the country’s secured transaction legal and infrastructure system.

MSMEs account for over 96% of formal enterprises in Barbados and are central to job creation, innovation, and economic diversification.

Yet a financing gap of more than 77% continues to constrain their growth, largely due to high collateral requirements and limited acceptance of non-traditional assets.

The project addresses these structural constraints by introducing a modern, harmonised Secured Transactions and Collateral Registry (STCR), allowing businesses to leverage assets such as equipment, inventory, and receivables to secure financing.