The Namibian government is rolling out a NAD500 million COVID-19 loan scheme aimed at supporting SMEs that are suffering economically due to the pandemic.
The Minister of Finance, Iipumbu Shiimi, says the Bank of Namibia will provide funding to four participating commercial banks, which will then extend the loans to qualifying SMEs at a lending rate of 7.5%. Loans are repayable over five years and repayment will be deferred for six months.
‘With interruptions in the regular flow of customers, small businesses are unable to receive the cash flow that is required to meet their contractual obligations,’ according to Shiimi.
Qualifying SMEs must have an annual turnover of less than NAD10 million, be tax-compliant and in good standing with their respective banks before the onset of the pandemic.
