THE Barbados-based Caribbean Development Bank (CDB) Tuesday announced a new initiative aimed at unlocking new pathways to finance for micro, small and medium-size enterprises (MSMEs), as well as to advance private sector growth in Barbados.

It said the US$560,000 grant to the Mia Mottley Government represents a strategic intervention designed to reduce long-standing 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.

“This initiative represents a transformative step in modernising access to finance for Caribbean entrepreneurs,” said Lisa Harding, the division chief at the CDB’s Private Sector Division.

“By enabling movable assets to serve as collateral we are reducing barriers for MSMEs in Barbados and advancing economic resilience through innovation — a key component of our 10-year strategic plan.”

The CDB said MSMEs account for over 96 per cent of formal enterprises in Barbados and are central to job creation, innovation, and economic diversification. Yet a financing gap of more than 77 per cent continues to constrain their growth, largely due to high collateral requirements and limited acceptance of non-traditional assets.

The region’s premier financial institution said 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.

“By strengthening legal certainty and reducing lending risks, the reform is expected to catalyse the introduction of asset-based lending and other financial products — including supply chain finance, financial leasing, agricultural leasing and warehouse receipt financing — while expanding inclusion for underserved groups, particularly women entrepreneurs.”

The CDB said research shows that modern collateral registries can increase access to credit, lower borrowing costs, and extend loan maturities — delivering measurable impact for MSMEs and the wider economy.

It said in addition to legislative reform and system development, the project will deliver targeted training for financial institutions, legal professionals, and regulators. It will also strengthen secondary markets through improved asset valuation and enforcement practices – ensuring sustainability and long-term impact. It is expected to particularly benefit women-owned businesses and enterprises engaged in green and sustainable initiatives.

Financed using special funds resources allocated from the 11th cycle of the bank’s Special Development Fund (SDF 11), the project aligns with CDB’s strategic objectives of building resilient economies, fostering inclusive and sustainable private sector development, and enhancing financial systems across the Caribbean.

It also contributes to regional progress on the sustainable development goals, particularly decent work and economic growth (SDG 8), industry, innovation and infrastructure (SDG 9), and reduced inequalities (SDG 10).

— CMC