Only existing companies to enjoy 2-year soft loans scheme

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Vice Chairman of the Trade, Industry and Tourism Committee in Ghana’s parliament, Hon. Ato Panford has said, government’s intention to roll out a soft loan scheme for small and medium scale enterprises as part of support in the wake of the coronavirus outbreak is only meant for existing businesses. Mr. Ato Panford indicates, newly established businesses with no proper records will not be considered in the scheme.

President Nana Addo Danquah Akuffo Addo, in an address to the nation yesterday, indicated that “Government, in collaboration with the National Board for Small Scale Industries (NBSSI), Business & Trade Associations and selected Commercial and Rural Banks, will roll out a soft loan scheme up to a total of six hundred million cedis (GH¢600 million), which will have a one-year moratorium and two-year repayment period for micro, small and medium scale businesses.”

Speaking on Skyy Power FM’s Jolly Breakfast Show with Samuel Kojo Brace on the development, the Shama Constituency Law maker explained that the government is targeting existing micro, small, and medium enterprises that have had their activities negatively impacted by the coronavirus pandemic to benefit from this scheme, and not people who will establish businesses with their idea of benefiting from this scheme.

“The scheme is not for new businesses, it has been designed for only existing businesses (micro, small and medium scale enterprises) most of these businesses have been deeply affected by the coronavirus outbreak and government has decided to assist them. You must be able to show proof of your business, where the business is located and the bank the business has been saving with, when these are received the board will sit on all of them and approve through the banks. There will also be follow ups to monitor the use of these loans,” he indicated.

According to him the NBSSI is as well securing other sources of funding to further cushion businesses in the country to overcome the challenges. He said any business that is interested in the scheme should contact their various offices.

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