Guidelines for SME funds

The National Letters

I AM proposing some guidelines for the K200 million funds pledged by the Government for Small Medium Enterprises (SME) which would be managed by the National Development Bank.
Here’s the following guidelines;

  • DO not lend to anyone with ideas on paper (paper SMEs). Lend to build and expand capacity of SMEs that are operational for more than three years;
  • DO not lend to individuals who have bad records with other banks;
  • DO not lend to SMEs who wish to refinance their debts;
  • Do not lend to SMEs with over millions of kina in operations. It defeats struggling SMEs;
  • SPREAD lending to SMEs in all four regions and 22 provinces;
  • PRIOR to lending, NDB officers should be screened of fraud. Tainted officers should be removed from the SME lending section;
  • PHYSICAL space of SMEs should be inspected by NDB officers for verification;
  • NOT all SMEs will apply for Agriculture loans. Spread funding to different sectors;
  • STRUCTURE tax incentives to help grow SMEs;
  • ALLOCATE funding to respective SME sectors;
  • ALL lending should accompany contract obligations for punishment should default happens;
  • ALL SMEs should be registered with Investment Promotion Authority, have an IRC TIN and bank account;
  • ALL SMEs should pay tax to the State;
  • SCREEN all applications to remove nepotism, abuse and fraud;
  • LOW interest rates for successful loan recipients with sound repayment period;
  • RECOVERY section should work closely with police and IRC to penalise SMEs who misapply the loan;
  • ALL loan awardees should undergo financial management education; and,
  • LOAN needs to be repaid with principal and interests.

Samson Komati,
PNG Think Tank Group Inc

4 comments

  • It should help people who have been struggling in doing business for many years like trade store, chicken farm, coffee farm, piggry farm, fish farm, vegetables, kaukau, potato and etc..

  • SME Loan; Priority must be given to those who are operating their small businesses/farms in the rural areas.

  • SME funds must be given priority to PNG nationalists with no really the larger business company but those that are at a minimum standard. We also want if SME funds should also consider and empower our PLWD who have already engaged in Microbusiness activities. Please it will make a bigger difference if SME funds have also separate package for PLWD who are participating in business activities, so let them be independent rather become a dependent, as let them be a role player I this Economic opportunity. Please do consider PLWD for greater equal participation.
    Theo Nemo Katinggo
    PLWD
    KIUNGA.

  • SME FUNDS NEED TO BOOST PLWD IN TO EQUAL ECONOMIC PARTICIPATIONS.

    SME funds should consider PLWD in a separate package so it can boost them to participate in economic development through Microbusiness activity. Please do consider PLWD.
    THEO NEMO KATINGGO
    PLWD & ENTERPRENUER.

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