KAMPALA– The Minister of Finance Planning and Economic Development Hon Matia Kasaija has announced that the government of Uganda has released Ugx 100 billion as an intervention package to help small businesses recover from the effects of Coronavirus pandemic.
Minister Kasaija announced this in a press statement issued to the media which outlined how the money can be obtained, used and paid back.
The money was put in place after President Yoweri Kaguta Museveni in his State of the Nation address on 30th July 2021, announced that the government shall create a micro small and medium fund to support businesses that have been affected by COVID-19.
The President directed the Ministry of Finance, Planning and Economic Development and Bank of Uganda to establish the fund and inform the general public how to access it.
Minister Kasaija said that the government has established the Small Business Recovery Fund (SBRF) in partnership with commercial banks, Microfinance, and credit institutions across the country, to provide affordable loans to businesses that have been affected by COVID-19 pandemic.
“The fund will provide consentional terms to small businesses that were in operation at the time Covid 19 pandemic struck” the statement issued reads in part.
However the participating financial institutions are expected to match the government contributions by raising Ugx 100 billion so that all together there is Ugx 200 billion.
According to Minister Kasaija the loan will repaid by the borrower in a period of 4 years on a reducing interest rate of 10% with a grace period of one year.