SDB bank gets $40 million from US to boost SMEs and female entrepreneurs

The US International Development Finance Corporation (DFC) has approved a US$ 40 million (Rs. 7.5 billion) term loan facility to SDB bank to promote financial inclusion, resulting in more support to SMEs, particularly female-owned Small and Medium Enterprises.

This comes as part of the financing recently approved by the DFC board to advance development in emerging markets of African, Middle Eastern, Eastern European, Indo-pacific, and Latin American regions, the local bank said in a media release.

The DFC is a US development bank specializing in providing financial support to private sector partners in developing markets. Promoting financial support to SMEs and women entrepreneurs in these markets is a key focus area for the bank.

SDB bank said it was selected for the loan primarily due to its innovative business model that takes a progressive approach to development, with an emphasis on financial empowerment and SME development.

“In fact, 40 per cent of the loan facility is reserved exclusively for women with the remaining 60 per cent being allocated to SMEs in general. The bank’s commitment to these forward-looking policies is evident in its specialized products for female-owned SMEs which include Uththamavi, a special investment scheme for women and a general SME loan offering,” the release said.

The investment loan approval granted by DFC comes at a critical time and is the first in over seven years.

The loan also comes with a series of other value additions including a Capacity Development Programme, which gives bank employees access to modern technology and know-how.

This invaluable resource is then passed on to the customer, which enables them to grow their enterprise, as their hard work is directed by strategic thinking and professional business insight.

Speaking about this new opportunity, Thilak Piyadigama, CEO, SDB bank said: “DFC is known for financing solutions which have helped overcome some of the most critical problems across the developing world.