First National Bank, a division of FirstRand, announced yesterday its clients could apply for a business loan through its Covid-19 loan scheme. Photo: Dylan Jacobs/African News Agency (ANA)
First National Bank, a division of FirstRand, announced yesterday its clients could apply for a business loan through its Covid-19 loan scheme. Photo: Dylan Jacobs/African News Agency (ANA)

FNB announces help via Covid-19 loan scheme

By Sandile Mchunu Time of article published Apr 30, 2020

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DURBAN - First National Bank (FNB), a division of FirstRand, announced yesterday its clients could apply for a business loan through its Covid-19 loan scheme.

The bank said it welcomed the president’s announcement of the R200 billion Covid-19 loan scheme, which would enable commercial banks to help businesses that were unable to meet their financial obligations during the lockdown period.

FNB has stressed that only businesses which were in good standing at the 29th of February and with a track record of honouring their credit obligations would be considered for the Covid-19 loan scheme.

“The loans will be offered at prime and qualifying businesses will only start repaying the loans six months after disbursement,” FNB said.

The government expects businesses to have an annual turnover of less than R300 million in order to qualify, be in good standing with their bank and must be registered with the SA Revenue Services.

The businesses must also be in financial distress as a result of a direct impact of lockdown resulting in inability to generate revenue and the loan must be applied to specific operating costs, such as salaries, rental and key operating proof of expenses needs to be provided.

FNB chief executive Jacques Celliers said: “We believe a government guarantee allows us to continue honouring our obligation to depositors while using our credit extension capabilities to be a conduit for government’s support for qualifying businesses. This is further evidence that partnerships can help South Africa to decisively respond to the impact of the global pandemic."

BUSINESS REPORT 

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