At the weekend, Standard Bank announced that the second stage of its loan scheme for businesses impacted by COVID-19 had kicked off.
This loan scheme forms part of government’s commitment to assist businesses with a R200 billion COVID-19 Business Loan Term Scheme.
The initial phase of Standard Bank’s dispersing of loans is now complete. That initial phase assisted small and medium businesses with a turnover of less than R300 million looking for relief.
The second phase of the initiative is open to all businesses, regardless of size.
“The first phase of the scheme attracted strong interest from customers. This, and the second phase of relief which is now live, will bring much-needed relief to businesses that have been adversely impacted by COVID-19,” said head of Business Banking at Standard Bank, Simone Cooper in a statement.
While there is no limit to the turnover of a company, firms will need to meet the following criteria in order to qualify for the loan scheme:
- Have an existing banking relationship with Standard Bank.
- Be in good standing with Standard Bank as of 31st December 2019.
- Registered with the South African Revenue Service.
- In a state of financial distress due to Covid-19 and require funding for operational expenses.
- Have no existing capacity to borrow that can help alleviate financial distress; this excludes overdraft facilities or facilities not typically intended to support operational expenses.
- Are a company, statutory body corporate, close corporation, sole proprietorship, trust or partnership, association, joint venture or any similar entity, but excludes state owned entities, listed companies (including their direct and indirect subsidiaries) and companies with capital market funders or funding instruments.
The loans being dispersed by Standard Bank will reportedly support businesses for six months and feature a six-month payment holiday, pending a credit assessment.
Standard Banks says that businesses that qualified for phase one of its loan scheme will be able to apply for this phase as well.
For those with a business in need of support visit Standard Bank’s website for information on the Business Term Loan Phase 2.