Parliament, Wednesday, 26 August 2020 – The Portfolio Committee on Small Business Development has welcomed intervention measures by the National Treasury, banks, the Sukuma Fund and the Small Enterprise Foundation (SEF) to mitigate the impact of the Covid-19 pandemic on small businesses.
President Cyril Ramaphosa announced a R100 billion credit guarantee to businesses in April this year, which was launched in two phases in May and July.
The National Treasury said that 9 125 businesses received financial relief from their respective banks, as of 23 August 2020. The loans were extended under the loan guarantee scheme.
The committee expressed dissatisfaction with the high number of businesses whose loan applications were either rejected or declined.
According to the Banking Association of South Africa, unsuccessful applications were due to some businesses not being in good standing with their respective banks, and also due to others simply failing risk assessment criteria.
The Sukuma Fund, on the other hand, is offering a non-repayable survival grant of R25 000 to small businesses, as well as a soft loan to qualifying small and medium enterprises.
The fund has allocated 3 432 survival grants to sole proprietors and approved 1 224 soft loans, as of 17 August 2020.
The committee was also briefed by the SEF on its business model, and then expressed its appreciation for contribution made by the foundation.
Committee Chairperson, Ms Violet Siwela, said that all types of interventions are welcome during these difficult times, big or small. “Most importantly, we appreciate the fact that SEF operate on the ground where informal traders are found.”
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT, MS VIOLET SIWELA.
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Email: jmolafo@parliament.gov.za
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