IDB Invest is providing up to US$25 million in long-term financing to Banco Múltiple Caribe Internacional to increase access to capital for micro, small, and medium-sized enterprises (MSMEs) in the Dominican Republic. 

The project aims to address key barriers that hinder business expansion for MSMEs, and particularly for women entrepreneurs. 

The financing will help Banco Caribe diversify its funding sources, extending its long-term funding stability and reducing its reliance on short-term deposits.

The financing package consists of two components: a senior loan of up to US$25 million with a tenor of up to five years, and a blended finance component of up to US$150,000 from We-Fi in the form of performance-based incentives.

These incentives will be granted upon the achievement of annual targets with the objective of increasing Banco Caribe’s client portfolio for women-owned or led small and medium-sized enterprises.

Additionally, IDB Invest will provide advisory support under the WE Finance Code (WE Code) initiative, strengthening Banco Caribe’s women’s banking strategy.

This assistance includes improving sex-disaggregated data collection and conducting a market diagnostic to size the women-led SME segment. The initiative will also enhance non-financial services while optimising the credit approval process to better accommodate women-led SMEs.

Access to financial services in the Dominican Republic has improved but remains below the regional average, limiting economic opportunities for MSMEs, which make up 98.4 per cent of businesses. These enterprises face a financing gap equal to 19.3 per cent of GDP. Women entrepreneurs face even greater barriers, including limited access to guarantees and tailored financial products.

Bridging these gaps is key to advancing financial inclusion, economic empowerment and growth, reinforcing the need for targeted solutions like this financing initiative.