Trinidad and Tobago Business Chambers Express Concern Over Scrapped SME Loan Program

Several business chambers across Trinidad and Tobago are voicing concerns today following the government’s decision to discontinue the $500 million Small to Medium Enterprise (SME) long-term guarantee loan program, a move that could significantly impact access to capital for smaller businesses.

Finance Minister Davendranath Tancoo announced the program’s termination during a Standing Finance Committee session last week. The program, launched in 2022, was designed to help non-energy sector businesses access financing for expansion and recovery from pandemic-related disruptions and supply chain issues. Kiran Singh, President of the Greater San Fernando Area Chamber of Commerce, warned that the withdrawal “risks undermining that confidence” and could discourage entrepreneurship. Access to affordable financing is a critical component of economic growth, particularly for SMEs which represent a significant portion of the country’s economic activity.

Angie Jairam, President of the Fyzabad Chamber of Commerce, noted the facility offered a “vital safety net” for qualifying businesses, enabling access to capital for expansion or recovery. She suggested the program may have been undersubscribed due to the high level of informality within the SME sector in Trinidad and Tobago, emphasizing the need for businesses to formalize operations to benefit from government support. Jairam further urged the government to explore enhanced credit guarantee systems and partnerships with credit unions, referencing resources available through the Small and Medium Enterprise Development Company Limited (SMEDC). Baldath Maharaj, President of the Chaguanas Chamber of Industry and Commerce, urged caution, highlighting the program’s role in supporting business confidence and stability.

While acknowledging the Minister’s focus on efficiency, chambers are proposing alternatives such as revised guarantee systems, interest rate subsidies, or a co-funded SME Development Fund. Officials indicated that the government plans to introduce new measures to address the needs of the business community, and further engagement with the Ministry of Finance is expected to ensure a smooth transition and continued access to financing for SMEs.