Government guaranteed load facility

FEATURES OF THE GUARANTEED LOAN FACILITY:

• All business sectors are eligible for the loan.
• 80% of the loan is guaranteed by government through BECI.
• The approval of the loan facility is entirely at the discretion of the banks and subject to their normal approval   
• Interest rate that will be charged is prime (currently 5.75%) plus 0.5%.
• The amount eligible to be borrowed depends on the turnover of the business.
• The Banks have to apply for the guarantee of the government before 30th November2020, and hence the loan application should be made early enough to give enough time to the banks to apply for the guarantee.
• The maximum loan term can be 24 months.
• In order to obtain the loan, the business must:

A.) Be tax compliant 

B.) Duly registered with CIPA.

C.) Have been operating for a year prior to 3rd April 2020.

D.) Demonstrate that COVID 19 has impacted their business and has a sustainable business model.

The consideration and approval of the loan is on a case by case basis and the success is solely dependent on how well the requirement and sustainability are presented to banks, and hence the preparation of the proposal is of utmost importance.

It appears that the banks are still formalising the policies, and are awaiting more clarity and information from the Government, around this facility.

Should you require any additional information pertaining to this matter, please contact your relationship manager at Forvis Mazars, or the Forvis Mazars Branch nearest to you and we will be glad to assist you.