Kaya 959 Reporter
The National Treasury has announced the launch of the Bounce Bank Support Scheme, which will provide additional cash to qualifying businesses in order to help build the economy and create jobs in South Africa.
The initiative was initially mentioned in February’s Budget Speech by Finance Minister Enoch Godongwana.
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Treasury stated in a statement on Tuesday that the Scheme is designed to help firms recover and bounce back after the Covid-19 pandemic lockdowns.
“The scheme will also help those businesses recovering from the July 2021 civil unrest in KwaZulu-Natal and Gauteng, as well as the current ongoing flood-related disaster. In June 2020, the Covid-19 Loan Guarantee Scheme was established to help ease financial pressures experienced by qualifying businesses negatively affected by low economic activity following lockdown restrictions to reduce the spread of Covid-19.
“The guarantee scheme formed part of a package of regulatory and direct support measures which provided significant financial support and helped preserve many jobs and kept businesses afloat.” read the statement.
According to Business Tech, The Bounce Back Support Scheme comprises a loan guarantee mechanism of R15 billion and a smaller equity-linked scheme which will be facilitated by the National Treasury and DFIs.
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