DURBAN - Nedbank will be helping facilitate the distribution of loans to small businesses for the newly launched South African Future Trust (SAFT).
SAFT has been established by Nicky and Jonathan Oppenheimer. The main aim of the SAFT is to mitigate the immediate economic impact of the Covid-19 crisis by keeping companies in business and protecting jobs, in order to fast track South Africa’s economic recovery after this pandemic.
The Trust will extend direct financial support to employees of South African small, medium and micro-sized businesses who are at risk of losing their jobs or will suffer a loss of income because of Covid-19. The SAFT has been funded with an initial contribution of R1 billion by Nicky and Jonathan Oppenheimer.
Four of South African banks, including Nedbank, will administer the scheme at no cost to the fund. The banks have also waived their normal credit fees for all loans approved under the SAFT scheme to maximise the funds available to recipients.
"Nedbank acknowledges that this is a time of heightened anxiety for our small business clients and their employees, not just in terms of their personal health but also their economic survival. We welcome this initiative which will provide some relief to small businesses, the lifeblood of our economy. We will continue to look for ways to support our clients during this time of uncertainty and are honoured to play a part in facilitating this process," said Nedbank Retail & Business Banking Managing Executive Ciko Thomas.
The scheme is currently available to clients of the four banks. SMMEs need to apply to their main bank. Once approved, the funds will be paid directly to the nominated employees, however liability for the loan remains with the business. Funds will be available from 3 April 2020.
Nedbank has also committed to supporting their clients during this time of uncertainty and have a number of solutions available to assist clients in good standing who are impacted by this pandemic.
This support could include deferring payments (or part thereof) for a suitable period, extending existing loan periods or extending additional credit to manage short term cashflow shortfalls.