Accessing credit continues to be a costly challenge for micro, small, and medium-sized enterprises (SMEs) or Mipymes in the Dominican Republic. Borrowing for a small business is much more costly than financing a new vehicle — despite a generally stable monetary environment. Car financing rates of 9.75% are available, up from around 8% in past years.
Yet, at the close of the first quarter of 2025, the average interest rate for small business loans stood at a low of 14.3% and an average interest rate of 16.7% as of March 2025, according to figures from the Superintendence of Banks, El Dia reports.
This disparity persists even though the Central Bank has held its policy rate steady throughout 2025, following a cumulative reduction of 125 basis points in the second half of 2024. These moves were expected to ease borrowing costs, but the data shows little relief for small business owners.
Analysts point to tighter credit conditions and a higher risk perception by financial institutions as the main drivers behind the elevated rates. Challenges such as limited credit history, informality, and lack of collateral continue to raise red flags for lenders.
Small business is a cornerstone of the Dominican economy, contributing 32% of GDP and generating more than 3 million jobs, or 61.6% of total employment. Yet, they continue to face systemic barriers when seeking financing.
Despite these challenges, the sector is growing. The total loan portfolio for small business reached RD$534.99 billion in March 2025 — an 8.5% year-over-year increase — marking consistent growth over the past five years.
The availability of low cost loans is unlikely to improve. Banks report rising delinquency. The non-performing loan (NPL) ratio for Mipymes reached 2.35% in local currency, totaling RD$9.55 billion in overdue loans as of March 2025. Nevertheless, while the delinquency figure has been climbing since 2024, it still remains below historic averages.
Microenterprises and smaller Pymes — the ones facing the highest rates — also show the highest delinquency levels, further justifying banks’ cautious stance. Nonetheless, 90.1% of outstanding Mipyme debt is still rated as “A” or “B,” suggesting overall healthy credit quality.
Interestingly, medium-sized businesses hold the highest proportion of prime-rated debt at 93.9%, while small enterprises have the lowest at 87.6%.
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El Dia
BHD
1 July 2025