Ronald Kasasa, dfcu Bank Head of Business Banking dfcu Bank has been at the forefront of transforming businesses in Uganda by providing affordable and flexible financing solutions. The Small Business Recovery Fund supports small businesses that have been affected by the Covid- 19 pandemic. We spoke to Ronald Kasasa , dfcu Head of Business Banking who gives more insights about this program.
> How have small business been impacted by the Covid – 19 Pandemic?
The Covid-19 pandemic has had a heavy impact on Uganda’s micro, small and medium-sized enterprises. Micro, small and medium-sized enterprises (MSMEs) generally had fewer assets, cash reserves and other resources to ride out the storm, making them particularly vulnerable to the crisis. However, it is because of their resilience that we see an opportunity for them survive. To convert those opportunities to reality, there is a need to continue supporting small businesses so that they can get back on track.
start=”2″> What is the Small Business Recovery Fund?
The dfcu Small Business Recovery Fund provides loans/credit to small businesses that have been adversely impacted by the COVID-19 pandemic but show potential for recovery if provided with the right financial support. Through the fund, dfcu provides affordable credit facilities to small businesses that have suffered financial distress arising from the knock-on effects of COVID-19 pandemic. This fund provides the much-needed liquidity to resuscitate such businesses.
start=”3″> Why should small business take up this funding?
The fund has been crafted to support small business to customers get back on their feet. The loan offer includes the following: A business can access up to UGX 100 million in financing
There is no minimum loan amount
The loans are offered at a discounted interest rate of 10% per annum
What is the repayment period for these loans?
The loan repayment period is a minimum of 6 months and a maximum of 4 years, which includes a grace period of a maximum of 1 year depending on the nature of the project. start=”5″> Who is eligible to access this funding? The credit facility is available to small businesses under the following criteria: Small businesses operated by individuals, groups, partnerships and companies, employing between 5-49 people; Business with an annual turnover of UGX 10 million to UGX 100 million; The businesses should demonstrate capacity for recovery; A qualifying borrower can only […]
