Why do small businesses still not have bank loans? Is it the firm, the loan price, or the bank? Guest post by Emma Zhang Development Impact Guest Blogger November 06, 2026 This page in: English

https://blogs.worldbank.org/en/impactevaluations/why-do-small-businesses-still-not-have-bank-loans--is-it-the-fir Increasing access to bank loans for small and medium enterprises (SMEs) in low- and middle-income countries is considered vital for economic development. Interventions to boost SME lending exist in most countries, and they are commonly implemented through commercial banks as partial default guarantees or loans with promotional interest rates. These two interventions are widespread even in countries where the fewest SMEs have bank loans, yet the percentage of registered firms that apply in low- and middle-income countries (LMICs) remains lower than anticipated.