PROMIPYME, the Dominican Republic’s government-backed financing institution for micro, small and medium-sized enterprises (MSMEs), reported record financial and operational performance between 2024 and June 2026, driven by sustained loan growth, improved credit recovery and greater operational efficiency.
The results were presented during the institution’s Second Ordinary Meeting of its Board of Directors on July 10, where officials reviewed financial indicators showing that PROMIPYME expanded its lending activities despite operating with an annual budget that has remained largely unchanged since 2008. According to the institution, growth has been supported by higher productivity, improved portfolio management and internally generated resources rather than increased government funding.
Loan Portfolio Expands by Nearly 38%
One of the report’s key indicators was the expansion of the loan portfolio, which increased from RD$8.61 billion in January 2024 to RD$11.85 billion in June 2026. The increase of RD$3.24 billion represents growth of 37.59%, reinforcing PROMIPYME’s role as one of the country’s leading sources of financing for MSMEs.
The institution also reported disbursements totaling RD$19.14 billion over the last 30 months. Total lending under the current administration has reached RD$19.83 billion, reflecting continued support for entrepreneurship, productive investment and job creation across the Dominican Republic.
Improved Credit Recovery Strengthens Financial Sustainability
PROMIPYME attributed part of its financial performance to stronger loan recovery and more efficient collection processes. During 2025, recovered loans totaled RD$6.57 billion, allowing the institution to finance nearly 80% of new lending using funds generated internally.
The quality of the loan portfolio also improved, with loans more than 30 days past due declining from 16.6% to 11.0%. According to the report, the improvement reflects stronger credit risk management and healthier institutional finances.
Board members were also informed that the RD$1.5 billion allocated to PROMIPYME in November 2025 was used exclusively to expand lending rather than cover operating or administrative expenses. The institution said the additional capital contributed to portfolio growth, higher financial income, stronger institutional equity and continued investments in technology and internal controls.
Proposal Seeks to Simplify Tax Compliance for MSMEs
During the meeting, PROMIPYME also presented a proposal for a simplified tax regime designed to encourage business formalization. The initiative would establish a Monotax (Monotributo) system that combines income tax, value-added tax (ITBIS) and social security contributions into a single simplified payment.
According to a study presented by the institution, 85.2% of Dominican MSMEs currently operate in the informal economy, largely because of the complexity of the existing tax system and administrative requirements. PROMIPYME said the proposal aims to promote a more competitive and inclusive business environment.
Board Reviews Additional Institutional Initiatives
In addition to reviewing the financial results, the Board approved the accreditation of a new representative from the commercial sector, discussed cooperation proposals involving the Ministry of Defense and FENACODEP, and received the 2026 budget proposal submitted by CODOPYME.
PROMIPYME concluded that its performance between 2024 and June 2026 demonstrates that it is possible to expand financing for Dominican MSMEs, strengthen institutional assets, improve portfolio quality and maintain long-term financial sustainability through efficient management of public resources.