PostBank Uganda has uncovered a plan to aid various enterprises in Uganda, recover from the divastating effects of Covid-19, through its Small Business Recovery Fund (SBRF) scheme.
It is a loan package availed by the entity at low interest rates, tailored towards revamping businesses seriously hit by severe lockdowns, and other Covid-19 informed restrictions.
Small and Medium enterprises (SMEs) will be the main beneficiaries of this scheme, and the bank has set aside Shs100 million as the maximum amount of money to be disbursed.
While unveiling this exciting package yesterday in Kampala, Head of business and Institutional Banking at PostBank, Doreen Rutazaana said business owners and farmers will be supplied with loans at 10% interest rate, in 49 bank branches across the country.
“PostBank will dispense up to Shs100 million to small businesses at a fixed interest rate of 10% per annum. This loan can be accessed from any of our 49 branches countrywide,” said Rutazaana.
“We are committed to transforming lives and livelihoods by availing affordable and sustainable financial services,” She added.
According to Rutazaana, customers will also enjoy flexible repayment periods of up to 4 years. A one-year grace period will also be given to customers, depending on the nature of business, a strategy employed to reduce the load burden.
The scheme will benefit all businesses that have been in existence for at least 2 years before the pandemic and employing 5- 49 persons, with an annual turnover of between UGX. 10 million to UGX. 100 million.
Accordingly, beneficiaries must also have a demonstrated potential for recovery.
Applicants of the scheme must also be residents within the area branch of operation, have an account with PostBank, possess a financial card, and have proof of collateral security, such as registered and unregistered land, chattel items and personal guarantors to receive the funds.
Interested individuals are required to visit any PostBank branch and fill the Small Business Recovery Funds form. However, businesses under the Agriculture Credit Fund are not eligible.
Uganda’s economy has been hit hard by the negative effects of Covid-19, which ravaged different sectors forcing some businesses to a stalemate, while others collapsed.
According to the 2021 report from Economic Policy Research Center (EPRC), 54% of businesses closed operations for quite some time during the pandemic, and 50% of businesses recorded a decline in sales. A handful of businesses have since voted themselves out of existence.
Against this background, PostBank Uganda decided to launch, its Small Business Recovery Fund following the re-opening of the economy, to support existing small and medium enterprises that were negatively impacted by the COVID-19 pandemic, to flourish.
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