COVID-19 Loan Scheme Phase 2
The COVID-19 Loan Scheme Phase 2 is intended for specific operational expenditures of the business, such as salaries and wages, rental and lease payments, utilities, and supply chain costs and other operating expenses. The loan is offered at the prime lending rate and can be settled at any time with no penalty fee for early settlement.
Government has specified that the COVID-19 Loan Scheme Phase 2 is available to businesses:
- that are in good standing
- that are registered with the South African Revenue Services (SARS)
- that are registered with the Companies and Intellectual Property Commission (CIPC) (where applicable)
- were unable to generate income revenue due to the national lockdown
- do not have the capacity to apply for a traditional business loan
How does Phase 2 of the COVID-19 Loan Scheme differ from Phase 1?
| COVID-19 Loan Scheme Phase 1 | COVID-19 Loan Scheme Phase 2 |
|---|---|
Available to businesses with a turnover of up to R300 million. |
Available to all businesses, regardless of turnover |
No maximum loan amount. |
Maximum loan amount of R100 million. |
Loan paid out over 3 months. |
Loan paid out over 3 - 6 months*. |
3-month payment break after last pay-out. |
Up to 6-month payment break after the last pay-out*. |
Signed expense declaration, supported by proof of operating expenses. |
Signed expense declaration, no proof of operating expenses required. |
*Subject to approval.
To apply please contact your banker or call the Business Desk on 087 7 362 247.
