Ingresar
US$20 Million For Women and SMEs
By Guzmán Ariza, Attorneys at Law
The Caribbean Development Bank (CAF) signed an agreement with Dominican Republic authorities to provide a line of credit of up to US$20 million to finance the growth of small and medium-sized enterprises (SMEs) in the country, with a focus on women-owned businesses.
The agreement was signed by CAF Director of Tourism and Representative in the Dominican Republic, Oscar Rueda.
"Access to financing is one of the most important obstacles for SMEs in Latin America, and this is even more pronounced for women-owned businesses," said Rueda. "With this operation, CAF seeks to help close the financing gap for SMEs in the Dominican Republic, especially those led by women, and contribute to the country's economic reactivation."
The Dominican Republic has a large and growing SME sector, which accounts for over 90% of businesses in the country. However, SMEs face a number of challenges, including limited access to financing, high taxes, and a lack of skilled labor.
The agreement is expected to help address some of these challenges and boost the growth of the SME sector in the Dominican Republic. The funds will be used to finance working capital, investment, and innovation projects.
The World Bank lists limited access to finance as one of the 10 most problematic factors for doing business in the Dominican Republic. Small and medium-sized businesses do not usually own buildings or land, which financial institutions traditionally accept as collateral for loans.
To solve the problem, the Dominican Republic introduced a new secured transactions law in 2020 and is now in the process of operationalizing the collateral registry. The goal of the secured transactions law is to increase access to finance and foster sustainable growth for SMEs through broader involvement of the financial sector. This is attained by developing a modern legal framework, an online collateral registry, an effective enforcement system and by leveraging technology-based tools for financing.
Guzmán Ariza, Attorneys at Law
Guzmán Ariza is a leading full-service law firm in the Dominican Republic, consistently ranked among the country’s top-tier firms by the most prominent global legal directories such as Chambers and Partners and The Legal 500.
With ten strategically located offices across the nation's principal business and tourism hubs, we are uniquely positioned to support clients in seizing opportunities within the largest and fastest-growing economy in Central America and the Caribbean.
Our multilingual team is well-versed in advising international clients across a broad spectrum of practice areas. In the field of intellectual property, we offer robust counsel and representation in both commercial transactions and litigation. Our services cover trademark and trade name protection, copyright and patent registration and enforcement, as well as licensing, assignments, and the transfer of IP rights.
Guzmán Ariza is globally connected through active memberships in prominent international legal networks, enabling us to effectively support cross-border matters and multinational transactions.