Businesses can apply for Covid-19 loans
National Treasury activates coronavirus loan guarantee scheme with major banks.
Businesses hit hard by Covid-19 can now apply for loans at their banks.
National Treasury has activated a loan guarantee scheme with the biggest commercial banks for businesses to access financial assistance.
On Tuesday, Treasury announced the Covid-19 loan guarantee scheme, which was proposed by President Cyril Ramaphosa in April, was activated.
The loan guarantee scheme is an initiative to provide loans, guaranteed by the government, to eligible businesses with an annual turnover of less than R300-million to meet some of their operational expenses.
Treasury said funds borrowed through this scheme can be used for operational expenses such as salaries, rent and lease agreements, contracts with suppliers and so on.
National Treasury said it provided a guarantee of R100-billion the scheme, but could increase it to R200-billion if necessary and if the scheme is successful.
Absa, First National Bank, Investec, Mercantile Bank, Nedbank and Standard Bank were among listed banks ready to accept loan applications from eligible businesses that bank with them.
This opens a financial relief door for some businesses that have not had much luck with other government financial fund relief programmes.
More details on the scheme can be found in a FAQ guide posted at https://www.treasury.gov.za/
Notice: Coronavirus reporting at Caxton Local Media aims to combat fake news.
Dear reader,
As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as “fake news”) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19.
Readers with any comments or queries may contact National Group Editor Irma Green (irma@caxton.co.za) or Legal Adviser Helene Eloff (helene@caxton.co.za).
Do you have more information about the story? Please send us an email to editorial@rekord.co.za or phone us on 083 625 4114.
For free breaking and community news, visit Rekord’s websites:
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram
