Ronald Kasasa, dfcu Bank’s Head of Business Banking.

dfcu Bank Uganda has launched a Small Business Recovery Fund that aims to offer a financial uplift to small businesses that have been adversely impacted by the COVID-19 pandemic.

Announcing the commencement of the fund on Tuesday, February 1, 2022, Ronald Kasasa, dfcu Bank’s Head of Business Banking said the Bank has been at the forefront of transforming businesses in Uganda by providing affordable and flexible financing solutions.

According to William Kayongo, the manager in charge of Enterprise Banking at dfcu Bank, the dfcu recovery fund is part of the bigger industry action spearheaded by Government of Uganda through Bank of Uganda.

Kayongo explained that through the fund, dfcu provides affordable credit facilities to small businesses that have suffered financial distress arising from the knock-on effects of COVID-19 pandemic. This fund provides the much-needed liquidity to resuscitate such businesses.

“SMEs are at the core of Uganda’s economy; with this initiative, we are focused on bridging the gap between them and financial support which they urgently require to grow and recover,” Kasasa said.

The loan offer includes the following: a business can access up to UGX 100 million in financing, there is no minimum loan amount and the loans are offered at a discounted interest rate of 10% per annum, which is on a reducing balance.

The fund is available to support all economic sectors such as Trade, Education, Real Estate, Services, Health etc.

Kayongo added that the loan repayment period is a minimum of 6 months and a maximum of 4 years, which includes a grace period of a maximum of 1 year depending on the nature of the project.

The credit facility is available to small businesses under the following criteria: Small businesses operated by individuals, groups, partnerships and companies, employing between 5-49 people and business with an annual turnover of UGX 10 million to UGX 100 million;

The businesses should also demonstrate capacity for recovery and a qualifying borrower can only access this financing once and there are no top-ups. This provides an opportunity to other eligible borrowers to access the much-needed financing;

Agri-businesses or agricultural activities that are eligible under the Agricultural Credit Facility (ACF) and those that have already been financed under ACF are not eligible. To apply, customers can visit the nearest dfcu Bank Branch or contact their relationship manager