Government unveils Covid-19 sustainable stimulus loan packages for SMEs

The government has unveiled sustainable stimulus packages for small and medium enterprises affected by the Covid-19 pandemic.

The initiative is a result of joint efforts by the Ministry of Economic Development and the SME Development Finance Corporation (SDFC) and aims to ease challenges posed by the pandemic, for small and medium enterprises.

The packages are targeted for businesses currently in operation and aims to help businesses by providing them loans after thorough discussions with consultants so that their businesses may be shaped the best way.

Loans under the Covid-19 sustainable stimulus packages will be issued to operational restaurants, cafés, guesthouses, gyms as well as salons. Three packages are issued under the stimulus loan scheme. As such, the first package, Stimulus package one will be issued to applicants seeking to complete ongoing projects. Stimulus package two will be issued to financially assist businesses run their operations and stimulus package three will focus on expanding businesses in a sustainable manner.

Businesses applying for the sustainable stimulus loan scheme must have had gained profits from their operations for three years, between 2018 – 2020. They are required to have been running operations for the past year.

Up to MVR one million will be issued under the loan scheme and an equity is only required for applicants applying for expansion loans. Businesses will be given a loan repayment period of five to eight years and the loans will carry an interest of six percent per year. A grace period of 12 to 24 months is given under the stimulus loan scheme.

The government will be prioritizing businesses that were heavily affected due to the precautionary measures such as the lockdown imposed due to Covid-19, and will focus on the Greater Malé Region as well as outlying atolls.

Applications for the Covid-19 sustainable stimulus loan scheme will be opened during July 2021.