State’s R200bn loan guarantee plan at risk of becoming ‘stillborn’
Concern has been raised about the plan’s failure to reach many small businesses, many of which do not meet the strict funding criteria set by banks
The government’s R200bn Covid-19 loan guarantee scheme, which is meant to assist small businesses through the health crisis, faces the real danger of becoming stillborn and bringing the economy down with it, trade union federation Cosatu told parliament on Wednesday.
The government’s stringent measures to curb the spread of the coronavirus led to the closure of many small businesses that simply did not have large enough cash buffers to remain afloat during the lockdown, which restricted trade. Many more remain on the brink of collapse despite the government moving to open the economy up this week...