SMEs should have account to access funds: Exec

ONE of the requirements for small business owners to have access to K80 million in development funds at the National Development Bank (NDB) is to have an account with the People’s Microbank Ltd, an official says.
The Government allocated K200 million to assist the SMEs: K100 million would go to the Bank South Pacific, K80 million to NDB and K20 million to the Department of Commerce and Industry (DCI).
NDB managing director Moses Liu said they were still waiting for the Government to release the K80 million to the bank to assist small medium enterprises (SMEs).
“We have some very exciting products to offer to our small people once the money comes through,” he said.
“NDB will have two lending programmes: one for start-up businesses and another for grow-up businesses. So a different level of funding for a level of business.”
While providing an update of the negotiations between the Department of Commerce and Industry with regards to guarantees between the banks and DCI, Liu said negotiations were completed last month and they were now waiting for the funds.
“The administrative process has been completed and we are now just waiting for the funds to come.”
The micro small medium enterprise (MSME) Council president Desmond Yaninen told The National last month that the K200 million allocated for SMEs was yet to be released.
He said the banks had developed concessional loans for MSMEs which would be at low interest rates and long repayment terms.