Private equity association says business owners should not be required to sign personal surety for loans
The SA Private Equity and Venture Capital Association says more equitable terms are required between stakeholders if the government’s R200bn loan guarantee scheme is to help the country’s small and medium-sized businesses through the worst of the Covid-19 pandemic.
The association believes banks are being far too risk-averse in extending loans in what are abnormal times for the whole economy. The Treasury stated at the launch of the scheme that banks must apply “their normal risk evaluation and credit application processes” and that owners might be required to sign surety for the loans.
Pokroy said many businesses are opting not to take the loans and are instead focusing on cost-cutting to get through the tough times, something that is contrary to the intentions of the scheme.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SA records 13 500 new Covid-19 cases in 24 hours, 111 deathsAs the number of COVID19 cases in South Africa continues to spike, the National Department of Health today announced that the country now has 264 184 confirmed cases. CoroanvirusPandemic
Read more »
Rid the infrastructure spend of patronage in the post-Covid-19 reconstruction - The Mail & GuardianThis can be done by making the project’s 30% of the budget for local broad-based black economic empowerment a separate budget to break the feedback loop that greases the wheels of patronage.
Read more »
Dis-Chem halts COVID-19 testingA backlog at laboratories has impacted the turnaround time for test results.
Read more »
Covid-19: SA citizens stranded abroad due to steep airfaresSouth Africans stranded abroad will have to fork out as much as R35000 for a repatriation flight home as some tickets prices have doubled in the past month. WeekendArgus
Read more »
SA passes 250,000 Covid-19 cases with 12,000 new infectionsSA has recorded 12,348 new cases of Covid-19 and 140 deaths in the past 24 hours.
Read more »
‘We have underestimated airborne transmission of Covid-19’, says Wits professor Shabir MadhiUniversity of the Witwatersrand Professor Shabir Madhi says airborne transmission of Covid-19 is a reality.
Read more »