The Ministry of Finance, Planning and Economic Development together with Bank of Uganda and financial institutions have agreed on the disbursement of the Shs200b loan facility for small businesses.
Under the loan facility dubbed the Small Businesses Recovery Fund (SBRF), the government of Uganda will contribute Shs100b while the participating banks will contribute the other Shs100b. BoU will administer the fund.
Speaking at the launch of the facility in Kampala on Tuesday, 23 November 2021 Secretary to Treasury Ramathan Ggoobi said the goal of the fund is to enhance the capability of small businesses to recover and resume operations at the levels they were before Covid-19.
The Finance minister, Mr Matia Kasaija, said the money was now available for borrowing.
“I wish to inform my fellow countrymen and women that @GovUganda has set up a Small Businesses Recovery Fund in Partnership with Financial Institutions supervised by @BOU_Official On behalf of Govt, I am pleased to inform the general public that the fund is now available,” he tweeted.
Loans to eligible borrowers will be extended for periods of a minimum of 6 months and a maximum of 4 years, including grace period of 1 year maximum depending on nature of project.
Loans will be secured by collateral of any form as agreed upon by banks and borrower.
All small business operated by individuals, groups, partnerships and companies employing 5-49 people and with annual turnover of UGX 10 million to UGX 100 million are eligible under this fund.
The maximum loan amount will be UGX100 million at interest rate of not more than 10% per annum.