THALIA HOLMES
GOVERNMENT has heard the cries of disgruntled small business owners struggling to stay afloat through the economic wreckage caused by the COVID-19 pandemic.
In the supplementary budget speech presented by Finance Minister Tito Mboweni on Wednesday, he addressed changes that will be made to the COVID-19 loan guarantee scheme.
The fund is part of a R500-billion stimulus package crafted by the government to address the needs arising from the pandemic. Launched in May, it will provide up to R200-billion in largely government-guaranteed loans to small businesses for operational expenses such as salaries, rent and lease agreements, utilities payments, and contracts with suppliers. Profits and losses are shared between government and the banks.
In its first month, the scheme lent over R10-billion, said the minister in his speech. However, at least R90-billion has yet to be disbursed, with the fund to receive a possible R100-billion extra if the market
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