FUND DETAILS
Name of the fund
COVID-19 Term Loan Scheme
Fund administered by
Banking institutions, on behalf of South African Reserve Bank and National Treasury
Type of relief/support
Special credit facility
Total size of the fund
R200b
Who does the fund target?
SMEs with a turnover of less than R300m
Sector target
All sectors
Minimum amount you can apply for
Not stipulated
Maximum amount you can apply for
Not stipulated
APPLICATIONS FOR THE COVID-19 TERM LOAN SCHEME WILL CLOSE ON 11 JULY 2021.
FUNDING CRITERIA:
- SME must show that they were in good standing with their banks prior to the onset of the Covid-19 pandemic.
- All loans will be subject to bank credit approvals.
- Operating entities - all business types, but specifically excluding individuals, state-owned entities, listed companies and companies with capital market funders or funding instruments
- Turnover must be less than R300m per year.
- The business must be registered with, and in good standing with SARS as at 29 February 2020 (i.e. up to date on all credit agreements, good credit history).
- The loan covers up to three months’ full operating expenses, and the qualifying amount will be determined by the business needs and affordability.
- Operating expenses include salary and wages; rental and lease cost; utilities; supply chain; and other operating expenses.
HOW TO APPLY:
- Complete and sign a loan application form from your bank. Only one application will be allowed to one bank.
SUPPORTING DOCUMENTATION TO BE PROVIDED:
- All documentation listed on the document checklist as determined by your bank.
FOR ADDITIONAL INFORMATION:
- Please contact your bank for further details.
Related Links:
Featured Articles:
- http://www.treasury.gov.za/comm_media/press/2020/COVID-19%20Loan%20Guarantee%20Scheme%20Q&A.pdf
- http://www.treasury.gov.za/comm_media/press/2020/COVID-19%20loan%20guarantee%20scheme%20FAQs%2026%20July.pdf
- https://www.businessinsider.co.za/how-to-apply-for-covid-19-credit-loan-guarantee-scheme-2020-6
- https://www.dailymaverick.co.za/article/2020-10-12-governments-covid-19-loan-guarantee-scheme-still-stuck-on-the-runway/?utm_medium=email&utm_campaign=Business%20Maverick%20Tuesday%2013%20October%20-%20NWU&utm_content=Business%20Maverick%20Tuesday%2013%20October%20-%20NWU%20CID_77058e264c3e4e2dbc1fc126e09bd58f&utm_source=TouchBasePro&utm_term=Governments%20Covid-19%20loan%20guarantee%20scheme%20still%20stuck%20on%20the%20runway
- https://www.gov.za/speeches/treasury-three-month-extension-covid-19-coronavirus-loan-guarantee-scheme-12-apr-2021-0000#%C2%A0
- https://www.iol.co.za/business-report/companies/basa-releases-covid-19-loan-guarantee-scheme-update-934ee694-6374-4d04-b982-2bcb6934b6e3