SBAC Bank PLC signed an agreement with Bangladesh Bank to join the central bank’s Tk 500 crore Start-up Refinance Fund, a move that promises cheaper credit and stronger support for new entrepreneurs and small firms. The deal was signed at the Bangladesh Bank headquarters in Motijheel by SM Mainul Kabir, managing director and chief executive officer of SBAC Bank PLC, and Nawshad Mustafa, director of the SME and Special Programmes Department of the central bank, and the ceremony was attended by deputy governor Nurun Nahar along with senior officials from both institutions. The fund is designed to make affordable finance available to early stage businesses by giving participating banks a refinance line that lowers the cost and risk of lending to startups, which can help promising ideas grow into viable companies. SBAC Bank said it will use the facility to design startup-friendly loan products, speed up credit decisions, and offer follow up support that includes mentorship, training and connections to other service providers so new firms have a better chance to succeed. Bangladesh Bank officials will provide oversight, training and monitoring to make sure funds are used well and to help participating lenders build the skills needed to assess young companies that lack long credit histories. For entrepreneurs, the new route to finance should mean clearer loan terms, smaller collateral burdens in some cases, and faster access to working capital for product testing, hiring and early marketing. The arrangement also aims to widen access for underrepresented founders, including women and youth, by encouraging flexible lending criteria and complementary support programmes. Industry experts say a steady flow of credit, paired with advice and market links, can turn single ideas into firms that create jobs, pay taxes and bring new products to customers. At the same time officials emphasise careful screening, good governance and sensible risk controls so public support is used efficiently and startups are supported without creating fragile loan books. SBAC Bank and Bangladesh Bank plan follow up steps like outreach to potential borrowers, workshops for staff and pilot lending rounds to learn quickly and refine the approach. The programme will also encourage banks to work with incubators, universities and local mentors so startups get business planning help as well as loans. Regular reporting and simple performance checks will track whether loans help firms grow, keep workers employed and repay on time, and lessons from early pilots will guide wider rollout to make the scheme stronger and more useful for ordinary entrepreneurs. If the scheme works as planned, more startups should find affordable finance, more banks may join the effort, and the wider economy could gain from faster innovation, more small business growth and stronger local job creation and thriving.
