SDB Bank receives $ 40 million loan to support SMEs
The United States International Development Finance Corporation (DFC) recently finalized the presentation of a $ 40 million (Rs 7.5 billion) term loan facility to SDB bank to support small and medium enterprises (SMEs), in particular women-owned enterprises.
After approving the SDB bank loan facility in January 2021, DFC recently released funds for the local bank, as part of its global initiative to finance advanced development in emerging markets in Africa, Middle -Orient, Eastern Europe, Indo-Pacific and Latin America.
“The DFC is providing this loan as part of the US policy to provide financial inclusion for all, especially to reduce gender inequalities and develop women’s businesses,” said the US Ambassador to Sri Lanka and the Maldives, Alaina B. Teplitz. âThe Sri Lankan economy is at a crucial time and requires stable long-term funding to recover from the consequences of COVID-19. The United States is keen to stimulate SMEs in Sri Lanka, mainly those led by women, given the negative impact felt by this segment due to the pandemic, âshe said.
SDB Bank’s progressive approach to development and its emphasis on financial empowerment and SME development, including the improvement of female entrepreneurs, led the bank to be selected for loan by DFC.
Forty percent of the loan facility will be used exclusively for women businesses, while 60% will be allocated to SMEs in general.
The facility also includes a series of value additions, including a capacity development program to provide SDB Bank employees with access to modern technology. This digital empowerment will translate into greater value delivered to customers to help them grow and build businesses using technological advancements.
The impact of the loan will extend to needy communities on the island and help SDB Bank provide a range of financial opportunities that create jobs, improve social welfare and help Sri Lankans enjoy better quality of life.
Alpen Capital acted as financial advisor in securing the loan. The bank is confident that the facility will strengthen its willingness to support SMEs and women entrepreneurs with quality innovative and competitive financial products, using cutting-edge digital technology, a bank official said.