As a result of the novel coronavirus and the steps taken to curb its spread, many businesses face a significant loss of income. In this context, government is partnering with commercial banks to provide financial support to small and medium-sized firms to enable them to meet their operational needs over the next few months.
On 4 May 2020, the National Treasury, South African Reserve Bank and Banking Association South Africa agreed on the detailed design, legal agreements and administrative processes to implement the loan guarantee scheme announced by President Ramaphosa on 20 April 2020. Participating banks are expected to start receiving and processing covid-19 loan applications from Monday 11 May 2020.
Read more: COVID-19 Loan Guarantee Scheme Q&A