Challenge
Small and medium enterprises (SME) in Mexico account for more than two-thirds of all business activity and 78 percent of employment in the country but suffer from a substantial SME credit gap which has been exacerbated during the COVID-19 pandemic. The Mexican National Institute of Statistics and Geography estimates that 92 percent of SMEs in the country do not have access to sufficient credit.
Solution and Impact
DFC has committed $100 million of financing to help Mexico’s Credito Real expand SME lending with a focus on lending to women-owned SMEs. Credito Real, which provides small business loans, payroll loans, consumer loans, used car loans, and microfinance loans. The DFC financing will enable it to support an additional 300 businesses across a range of sectors from housing construction and transportation to retail, health and services.