Last week the National Treasury announced that the Bounce Back Support scheme had come into effect. This loan scheme was created as a way to help SMEs get back into form following the pandemic and lockdown.

To that end, FNB has announced that it will be fielding applications for the scheme.

“When national government first identified the need for this type of Treasury-backed loan scheme to help South Africa’s SMEs get back on their feet after more than two years of significant challenges, FNB wasted no time in reaffirming its commitment, and our involvement in the programme is another important way in which we are delivering on our promise to help the country’s all-important small businesses sector,” FNB Commercial chief executive officer, Gordon Little said in a statement.

Loans under this scheme can range from a minimum of R10 000 to a maximum of R10 million with an interest rate of prime plus 3 percent. Loan terms are also up to 60 months with no penalty for early settlement.

Businesses will need to have a maximum turnover of R100 million in order to qualify for a loan. Businesses will also need to have a good credit record with no arrears or judgements. Businesses will also be subject to FNB’s risk evaluation, credit application and granting process.

“In recent years, FNB has invested significantly into simplifying its credit risk assessment and business lending processes, and we have started to see a healthy increase in SME lending activity over the past few months,” says Little.

For more information on loans from FNB head to its website.