Government to provide concessional loans for SMEs
June 4, 2020 12:45 pm
Minister for Economy Aiyaz Sayed-Khaiyum
The government will provide loans for Small and Micro businesses at concessional rates.
Minister for Economy Aiyaz Sayed-Khaiyum says the initiative is designed to help businesses struggling with the effects of COVID-19.
Micro enterprises with an annual gross revenue of up to $50,000 can get a loan of $7,000 at a concessional rate of 0.5%.
Small enterprises earning up to $300,000 can apply for $14,000 with an interest rate of 1%.
Medium enterprises which make from $300,000 to $1.25 million a year are eligible for up to $21,000 at a concessional interest rate of 1.5%.
“As we know, a number of small and medium enterprises do face financial issues. Some of them have financial turmoil where they may not be able to meet their daily requirements – their working capital. We want to give them a hand. Their is certain criteria in terms of they eligibility to access the loans that we have offered”.
The repayment term is five years, with no mandatory payments for the first 12 months.
Applications open on 8th June and close on the 30th.
All applications will be vetted by a working committee including Women in Business, the Fiji Institute of Accountants, The Fiji Chamber of Commerce and the Fiji Commerce and Employers Federation.
To make it easier for people to access the loan facility, application forms will be available at the Births, Deaths and Marriage offices, Legal Aid Commission Office and provincial and district offices.
Sayed-Khaiyum is encouraging SMEs to take advantage of this new facility to help their business stay afloat.
The local facility will also be available to anyone setting up a new micro business.