Scheme assisted over 600 SMEs

MORE than 600 owners of small-to-medium enterprises (SMEs) have benefited from a Government-supported loan facility – the SME credit enhancement scheme loan – through the BSP Financial Group Ltd (BSP).
BSP group chief executive officer Robin Fleming said since the announcement in May of the reduction of equity requirement from 30 per cent to 10 per cent, more SME owners had accessed the loan.
“This included the change in the maximum loan amount from K3m to K5m at a fixed low interest rate of 5 per cent for a repayment period of up to 15 years,” Fleming said.
“Since the relaxation of the requirement on equity, we were able to fund 667 SMEs with K92.1m.
“The average loan size is K140,000 from the K100m allocated to BSP.” BSP head of SME Jeffrey Singer said apart from funding 667 SMEs, there were 233 applications pending valued at K57.9 million.
“The assessment of loans includes SMEs being able to meet BSP’s normal credit requirements to access finance under the scheme.
“This includes SME borrowers demonstrating their capacity to meet ongoing loan commitments and are able to provide acceptable collaterals to cover loan amounts.
“The emphasis is also on the ability of a borrower to comply with regulatory requirements that includes meeting their tax obligations annually.”
He said BSP had applications valued at around K40 million.
“Total approvals will exceed K100m by the end of the year on the basis that further Government funding will be forthcoming and based on repayments from borrowers allowing for funds from the original K100m to be re-lent.”