Agreement allows SMEs to access K100mil at 5pc interest rate

By SHIRLEY MAULUDU
BANK South Pacific (BSP) yesterday signed a K100 million partnership agreement with the Government to provide a lending facility to the small to medium enterprise (SME) sector at an interest rate of five per cent.
BSP group chief executive Robin Fleming said the loan product would be available to any customer that met regulatory requirements.
“SME owners who are BSP customers can borrow from K5,000 up to K3,000,000 at a rate of five per cent for a repayment period of up to 15 years, depending on the assets being financed under the facility,” Fleming said.
“This loan product will be of great assistance to our SME customers during this Covid-19 period.
“Under the agreement, access to finance will be considered for SME businesses and companies that are 100 per cent nationally owned.
“However, those business and companies must also comply with regulatory requirements that include registration with the Investment Promotion Authority (IPA), registration for a tax identification number with the Internal Revenue Commission, and be able to meet their tax obligations annually.
“Refinancing of existing business loans with BSP and other banks are permitted under this loan product.” Fleming said BSP would begin processing applications once funding was made available to the bank.
He said there had been a lot of interest expressed by SMEs to have access to this particular loan product since the announcement was made by the Government.
Commerce and Industry Minister William Duma earlier this month announced that the National Executive Council had approved the release of K200 million to be used as relief support for SMEs and other small businesses in the country.
Duma said K100 million would be allocated to BSP while the National Development Bank would be given K80 million to assist the small businesses.
“He said the other K20 million would be parked under Commerce and Industry Department to help with administration and monitoring of the funding.