Paula Luckhoff
| Ray White interviews Stuart Theobald, Chairperson of Intellidex, on The Money Show.
First National Bank has announced the launch of the government-backed ‘bounce back’ scheme designed to help small and medium-sized enterprises get back on their feet.
The Bounce Back Support Scheme is a way for government to facilitate the recovery of businesses beyond the Covid-19 pandemic lockdowns.
The necessary funding will initially take the form of loan guarantees.
FNB says it has already begun processing applications, reports BusinessTech.
RELATED: Help for small businesses: How government’s ‘Bounce Back’ scheme will work
“Funds borrowed from this Scheme, through participating banks, Development Finance Institutions (DFIs) and non-bank Small Medium Enterprise (SME) finance providers, can be used for growth and expansion and to foster job creation within South Africa.”
Media statement on the Bounce Bank Support Scheme for businesses. Read more from the Treasury website: https://t.co/5wDMcj9opv @BankingZA @SAReserveBank pic.twitter.com/8T7MUB3T3F
— National Treasury (@TreasuryRSA) April 26, 2022
Bruce Whitfield interviews financial analyst Stuart Theobald, Chairperson of Intellidex.
The design ensures that the government takes some of the risk off the balance sheets of banks… The problem with the loan guarantee scheme launched in 2020 following the first lockdowns is that that banks were stuck with the first loss…
Stuart Theobald, Chairperson – Intellidex
With this scheme there is a first tranche loss that the government will cover of a portfolio. In effect, government is covering the first 20.5% of loans that go bad… That really does shift the banks’ appetite as it means they can tolerate much more risk.
Stuart Theobald, Chairperson – Intellidex
For more detail, listen to the discussion below:
This article first appeared on CapeTalk : FNB launches govt-backed ‘bounce back’ loans to help small businesses
For all the latest lifestyle News Click Here
