Why SME Financing Is Back On The World’s Radar

This World Bank and IMF just completed their Annual Spring meetings in Washington, DC. Legions of finance officials from around the world descended upon DC – ostensibly to discuss important issues like job creation, a skilled workforce and fintech’s global growth. Unfortunately, tariffs and concern about the overall global economy instead dominated the headlines.
The importance of supporting the world’s Small and Medium Enterprises (SMEs) has once again become apparent. In a period where multinational corporations are concerned about reshoring, tariffs and political nationalism, SMEs will be critical source of job creation, innovation and local economic growth. But they need financing.
New models, such as Liquida Capital, and institutional models, such as the International Finance Corporation’s SME Finance Forum, are stepping into the void to provide SMEs with access to important resources to start, grow or scale their businesses. And not a moment too soon. Recent data from Pitchbook shows that 71% of venture capital in the Q1 2025 went to artificial intelligence, which, while important, is not the focus of the vast majority of SMEs. In addition, private investors returned to investing in SMEs in the friendly confines of California, Massachusetts and New York, rather than looking at SMEs around the United States and world.
IFC SME Finance Forum 2024 in Brazil
SME Finance Forum, Gustavo Rampani
In the United States, an interesting model is that of Liquida Capital. Its founder, Andre Dowdell, is a serial entrepreneur who bootstrapped various businesses to success. His frustration with the way that America finances its SMEs – through banks with conservative lending policies or venture capital that is limited to certain cities and sectors, led him to start Liquida Capital. The group connects SMEs to many different sources of capital across the country to find the best, and most willing partner. In 2024 alone, Dowdell and Liquida Capital helped SMEs in the United States raise over $50 million in capital. Since its inception, it has helped over 1500 SMEs in America to access capital for launch or growth.
Liquida solves several important challenges facing the small business sector in the United States. Recent changes to the Small Business Administration by the Trump Administration have reduced the amount of SBA-backed loans available around the country. Major banks and community banks relied on these guarantees to support new entrepreneurs. And private investors, like venture capitalists, almost never invest in non-technology or non-science-based businesses. But if an SME is willing to look beyond the narrative of VC as the only option, there is still significant amount of capital in the system. Companies that leverage a broader market to identify willing lenders and investors beyond the reach of the SME geographically or by sector.