Loan guarantee scheme fails to reach 2.5-million small businesses, report finds
The government’s Covid-19 financial aid programme for companies is missing the SME mark
16 December 2020 - 09:51
UPDATED 16 December 2020 - 17:39
Less than 1% of SA’s small businesses have benefited from the beleaguered Covid-19 loan guarantee scheme, originally intended as a flagship of the government’s economic support package.
This is according to a new report from consultancy McKinsey & Co released on Tuesday, which suggested that reluctance by small businesses to take on more onerous debt and burdensome traditional risk criteria by banks have contributed to the scheme’s failure to reach SA’s roughly 2.5-million small firms...
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