Standard Bank gives SA small business owners and students a 3-month payment holiday
Cape Town - Standard Bank on Sunday announced a 3-month payment holiday for small business owners and students in South Africa amid the coronavirus pandemic.
"We understand the pressures of being a small business owner. So we would like to lighten the load by giving our customers with a turnover of less than 20M a 3- month payment holiday, effective 1 April 2020. Visit https://bit.ly/2wvUwXY for more information," the bank said on Sunday.
According to Standard Bank's website you are eligible for the Coronavirus Business Interruption Payment Scheme if:
- Your business is South African based, with a turnover of no more than R 20 million per year.
- Your Business Current account, Bizlaunch account and Business Lending accounts are paid up to date.
- Your business is in good standing.
Standard Bank said it would set up automatic new payment terms for these small business owners.
"This measure will not only assist our small business clients with managing their cash flows, but also allow them to honour payments to their own employee base," the bank said.
Standard Bank South Africa Chief Executive Lungisa Fuzile explains: “The relief will come from capitalising the interest and fees typically paid to the bank each month and changing the terms of repayment to a later date. This, we hope, will relieve cash flow constraints currently caused by the COVID-19 outbreak.”
"The DA has called for a loan forbearance programme since the national disaster was declared, and we are pleased that this request has been heeded. We now need to see this rolled out by all other banks and loan-making institutions.
"This business loan forbearance, if it is matched by all banks, will give much needed relief to struggling businesses and families. It will give our economy the breathing room it needs to survive the next few months," Hill-Lewis said.IOL