Council wants to know when Covid-19 funds will be released

The National Business

THE MSME (Micro Small Medium Enterprise) Council welcomes the Government’s support for business but wants to know:

  • When the K200 million cheap SME loan funding will be released; and,
  • How MSMEs can access the funding support for Covid-19 from their respective MPs.

Government had while passing the 2020 national budget earmarked K200 million with commercial banks to enable soft lending for businesses to take place.
In a recent cabinet decision, Bank South Pacific (BSP) and the National Development Bank (NDB) were approved to partner the government on the loan scheme.
Prime Minister James Marape said in Parliament last week that this money would be released soon and that the delay was due to the terms of agreements with the banks.
Treasurer Ian Ling-Stuckey also said in Parliament last week that as part of its Covid-19 economic stimulus package, K2 million had been dispensed to the districts and K1.5 million to the provinces as part of a decentralised process.
Ling-Stuckey said as part of the K2 million for districts, K500,000 had been set aside for micro small medium enterprise.
The treasurer said those who wished to access the funding could approach their provincial governments and district development authorities.
Micro Small Medium Enterprise Council Desmond Yaninen said: “We thank Prime Minister James Marape, Treasurer Ian Ling-Stuckey and Finance Minister Rainbo Paita for their support.
“We welcome the announcement with cautious optimism,” he said.
“The low interest rates and longer repayment terms will indeed be a game changer for MSMEs but for many, the question is when they will be receiving the much-anticipated Covid-19 economic stimulus payments promised by the Government.”