Phoenix 24
New credit line targets businesses struggling to qualify
TASHKENT, Uzbekistan — July 2026.
The European Bank for Reconstruction and Development will provide up to $50 million to Uzbekistan’s O‘zsanoatqurilishbank, commonly known as SQB, to expand financing for businesses owned or managed by young entrepreneurs. The operation forms part of the EBRD’s Youth in Business programme for Central Asia and will focus on micro, small and medium-sized enterprises led by people under the age of 35. The financing may be disbursed in United States dollars or through a synthetic structure linked to the Uzbek som, offering SQB additional flexibility when extending credit to domestic companies. The initiative is intended to support business expansion, employment creation and greater financial inclusion in an economy where younger citizens represent a substantial share of the population.
Uzbekistan’s demographic profile has made youth entrepreneurship a strategic economic priority, with more than 61% of the country’s population aged 35 or younger and approximately 9.63 million people between the ages of 14 and 30 at the beginning of 2025. This younger generation is increasingly associated with technical skills, digital familiarity and growing demand for employment opportunities beyond traditional public-sector or state-linked industries. The EBRD believes that stronger access to financing can help convert this workforce into business founders, managers and employers capable of contributing to private-sector growth. However, many newly created companies continue to face difficulties meeting the documentation, operating-history and collateral requirements traditionally used by commercial banks.
The loan will be provided in two tranches of up to $25 million each, with the second tranche remaining uncommitted until the initial phase is assessed. It follows an earlier EBRD facility extended to SQB in 2025 and is designed to expand the lender’s financial products for youth-led companies while strengthening its capacity to evaluate smaller borrowers. The programme will combine credit with non-financial services, including training, technical assistance, advisory support and tools that help entrepreneurs improve planning, management and financial reporting. SQB, Uzbekistan’s third-largest state-owned bank, operated through 105 outlets and served approximately 3.2 million clients at the end of 2025, giving the programme a nationwide distribution network.
Small enterprises already play a central role in Uzbekistan’s economy, accounting for 51.5% of gross domestic product between January and September 2025. National statistics indicated that approximately 1.2 million small business entities were operating in the country by October 1 of that year, demonstrating the scale of the sector and its importance for employment and regional development. Despite this economic weight, many small companies still struggle to secure formal bank financing because available liquidity often flows toward sovereign lending, state financing or larger established corporations. The challenge therefore involves not only increasing the amount of money within the banking system but ensuring that credit reaches productive businesses capable of generating jobs and economic activity.
For many entrepreneurs, the first obstacle is establishing that their business is bankable under conventional lending standards. Smaller companies frequently lack detailed financial projections, formalized business plans, transparent accounting records or lengthy operating histories, making it difficult for banks to assess risk through the same systems used for large corporate borrowers. Young founders and first-time business owners may also lack property, machinery or other fixed assets that can be pledged as collateral. The EBRD programme is expected to address this mismatch by helping SQB design products that place greater emphasis on the founder’s credibility, management team, operating model and realistic business plan.
The financing structure includes mechanisms intended to permit lower or more flexible collateral requirements for eligible borrowers. Result-based compensation and risk-sharing instruments may help reduce the financial exposure faced by participating institutions when lending to entrepreneurs who do not possess traditional guarantees. The EBRD will also support capacity-building within SQB so that employees can better understand the needs and characteristics of young businesses rather than treating small-business finance as a reduced version of corporate lending. Digital distribution will be emphasized to improve access outside Tashkent and reach entrepreneurs operating in regions where physical banking services, professional advice and business-support networks may be more limited.
Women entrepreneurs face additional barriers that extend beyond loan eligibility and financial documentation. Although Uzbekistan has introduced reforms and programmes designed to support women-owned enterprises, access can remain restricted by limited information, weaker professional networks, social expectations, gender stereotypes and disproportionate caregiving responsibilities. These factors may prevent women from learning about available services, formalizing their businesses or participating in the networks that connect entrepreneurs with lenders, advisers and potential partners. Specialists have therefore emphasized that effective support should include mentoring, tailored advisory services, grants, credit and continued assistance after a business has been launched.
The SQB loan forms part of two EBRD financial-sector operations in Uzbekistan with a combined value of up to $100 million. A separate facility of up to $50 million will be provided to the Mortgage Refinancing Company of Uzbekistan to support residential mortgage development and promote more standardized lending practices. The broader package reflects the EBRD’s growing involvement in Uzbekistan’s financial system and its effort to direct capital toward private enterprise, housing and underserved borrowers. It also complements a separate cooperation agreement under which the Uzbek government will provide up to $20 million in grants for technical cooperation and advisory support for domestic small and medium-sized companies.
Uzbekistan has remained the leading recipient of EBRD financing in Central Asia for six consecutive years. The institution has invested nearly $6.9 billion across approximately 210 projects in the country, with most of that financing directed toward private entrepreneurship, infrastructure, financial institutions, manufacturing, services and green development. The latest youth-focused credit line seeks to translate that institutional engagement into practical financing for smaller companies that often remain outside conventional lending channels. Its effectiveness will depend on whether credit, training and risk-sharing measures can enable viable young businesses to overcome administrative barriers and develop into stable employers within Uzbekistan’s expanding private sector.
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