Challenge
Although micro, small and medium enterprises in Guatemala account for an estimated 99 percent of economic activity in the country, these businesses often struggle to access financing. According to the SME Finance Forum, SMEs and microenterprises in Guatemala face a $14 billion financing gap, and women-owned businesses and businesses in small cities and rural areas are particularly challenged.
Solution and Impact
DFC committed $200 million in financing to Guatemala’s Banco Industrial to expand lending to small and medium enterprises and businesses that are owned by or led by women. The financing has enabled Banco Industrial to support businesses across the country in a range of sectors.
Some of the Guatemalan businesses that were able to access loans included a meat seller that used a loan to introduce cold storage, a footwear manufacturer that purchased new equipment to improve production times, a toy maker that expanded into a new line of educational toys, and a manufacturer of automotive accessories that expanded its product line. Banco Industrial has also provided financing that enabled a payroll systems company to upgrade its technology, and enabled a bed manufacturer expand its business into neighboring countries.