El Salvador’s Legislative Assembly approved guarantees totaling US$190 million to support two loans aimed at modernizing and transforming the country’s micro, small, and medium-size enterprise (MSME) sector. This strategic investment seeks to strengthen energy efficiency and promote the technological transformation of these key productive units for the salvadoran economy.

The first guarantee contract guarantees a loan of up to $60 million, financed by the Inter-American Development Bank (IDB) and executed by Banco de Desarrollo de El Salvador (BANDESAL), to implement the Energy Efficiency and Renewable Energy Financing Program for MSMEs. This program will offer medium- and long-term loans for investments in clean technologies such as high-efficiency boilers, solar systems, biogas, and modernization of electrical equipment.
At the same session, the deputies approved a second loan for up to US$130 million, also between BANDESAL and the IDB, which will finance the Program to Support the Technological and Digital Transformation of MSMEs. The funds will enable companies to acquire modern machinery, software, maintenance services, and training in digital technology, as well as to renovate technological infrastructure such as data centers.

Both loans, with terms of up to 23 years, represent a significant injection of capital to boost the competitiveness of MSMEs, a sector that generates employment and boosts the national economy. The general director of Investment and Public Credit of the Ministry of Finance, Marlon Herrera, explained that these initiatives are aligned with the objectives of sustainability and modernization of the country’s productive apparatus.
With these approvals, the government seeks not only to reactivate the economy with concrete investments, but also to improve productivity and reduce the environmental impact of the salvadoran business sector. The financial commitment is clear: to modernize with a vision for the future and to support with tangible resources those who move the economy from the bottom up.
