DURBAN - Budget Insurance has launched a R6 million small business relief fund to help small businesses that have been impacted by the coronavirus pandemic and lockdown regulations.
Alex Terblanché, Head of Business Insurance at Budget Insurance launched the relief fund for the insurer's business insurance customers who have been affected by the Covid-19 pandemic.
The R6 million fund will be split amongst small businesses with an annual turnover of less than R15 million. Those that qualify will be offered a relief package of up R100 000 each, as well as business mentoring support.
The insurer is also honouring all valid business interruption claims from customers who have been affected by loss of income caused by the national lockdown.
"Supporting small businesses during this time is essential especially given South Africa’s dire unemployment rate of 30.1 percent, which is expected to worsen. We believe that SMEs can help combat unemployment given that, according to the Small Business Institute, approximately 98 percent of all registered businesses in the country are SMMEs," said Terblanché.
According to the Wave 2 survey on the impact of the Covid-19 pandemic on employment and income in South Africa released by Statistics South Africa, 8.1 percent of respondents reported that they lost their jobs or had to close their businesses and 1.4 percent became unemployed.
In April, Budget’s holding company, TIH, launched a R70 million relief fund to support small businesses in its supply chain.
"We are well aware of the devastation and dire consequences the pandemic has caused for small businesses around the world. This is another way we are saying Thuma Mina," concluded Terblanché.