The Bank of Namibia (BoN) in collaboration with the Ministry of Finance has availed N.dollars 500 million to assist Small and Medium Enterprises (SMEs) under its SME Economic Recovery Loan Scheme.
The loan scheme was created to help SMEs overcome current economic challenges by providing working capital and liquidity to help them manage their cash flows and cover certain costs.
According to a joint media release issued on Monday, the SMEs will continue to operate and cover their expenses while restructuring their operating models to future-proof their businesses as a result of the aforementioned.
This will promote economic development while also reducing unemployment and income inequality.
“In collaboration with the participating bank, the Ministry of Finance and Public Enterprises and the Bank of Namibia, we reformed the former Covid-19 SME Loan to accommodate SMEs that struggled to meet the qualifying criteria and expanded the reach so that business owners are aware of the facility and can participate,” the statement said.
The scheme’s revised features will allow SMEs to qualify for loans ranging from N.dollars 50 000 to N.dollars 10 million. The obligation to pay interest and capital on these loans will be deferred for six months from the date of the first drawdown.
The loans are granted at the prevailing prime lending rate minus 50 basis points.
“Interested SMEs should have an annual turnover of no more than N.dollars 60 million and be able to continue operations in the foreseeable future by demonstrating solvency. Entities must be registered with BIPA and, where required by law, with the national tax authority, the Namibia Revenue Agency. Enterprises that want to be helped by the scheme should make sure they don’t have any existing business recovery loans with any other financial institution,” it said.
First National Bank, Bank Windhoek, Standard Bank, and Nedbank are among the banks involved in the scheme.
Interested SMEs are encouraged to contact their respective banks for more information on credit terms and conditions.
Source: The Namibian Press Agency
