This was received from FNB for their business banking clients, and Hairnews is passing it on, hoping it will assist the industry as this funding is available through all banks.
Covid-19 Loan Scheme: Available from All Banks
Backed by National Treasury support, FNB is administering the COVID-19 Loan Scheme for SMEs to help businesses across the country that are unable to pay for specific operational expenses due to COVID-19 and the national lockdown.
The COVID-19 Loan Scheme is a 66-month loan which is available to businesses with an annual turnover of less than R300 million and meet the requirements set out by government. Each business is eligible for one COVID-19 Loan Scheme across all financial institutions and must apply for the loan with their main bank.
It is designed to help businesses across the country who may not be able to meet their financial obligations during lockdown, thus ensuring their resilience for when the economy reopens.
The loan period is 66 months and includes a 6-month payment break which means that the first payment is only due in month 7. The loan can be settled at any time with no penalty fee for early settlement. The COVID-19 Loan Scheme is offered at a favourable lending rate and will be paid in three pay-outs over three months (one pay-out per month).
The COVID-19 Loan Scheme is intended for specific operational expenditures of the business, such as salaries and wages, rental and lease payments, utilities, supply chain costs and other operating expenses. The government has specified that the COVID-19 Loan Scheme is available to businesses:
• with turnover of less than R300M
• that are in good standing
• that are registered with the South African Revenue Services (SARS)
• that are registered with the Companies and Intellectual Property Commission (CIPC)
• that have been negatively impacted by COVID-19
To apply for the COVID-19 Loan Scheme with FNB, please contact the Business Desk on 0877 362 247.
To apply with other banks, please contact your bank to get more info.
South African Future Trust (SAFT) Funding: Available from All Banks
The banks are administering the following funding on behalf of a third party.
In response to COVID-19, and with the aim to mitigate the immediate economic impact, the Oppenheimer family has pledged R1 billion to extend a financial lifeline to employees of South African Small, Medium and Micro-sized Enterprises (SMMEs).
The South African Future Trust (SAFT) was formed to extend direct financial support to SMME employees who are at risk of losing jobs or will suffer a loss of income because of COVID-19. The funding will be provided as an interest-free loan to the business, where employees carry no liability. Money will be paid directly to employees on a weekly basis.
The qualifying criteria are the following: (this was provided by FNB, other banks may be different)
• Be an existing business client.
• Have an annual turnover of below R25m per annum.
• Have been trading for at least 24 months.
• Have been a sustainable business at 29 February 2020.
• Demonstrate that it has been adversely affected by COVID-19.
To apply, FNB clients should please complete the SME Assessment available on the FNB App and website. Businesses with other banks, please contact your bank for further info.