The COVID-19 virus has had its toll on the economy of Kenya and the world as a whole. The major negative effect being the dwindling state of business and services. The covid effect left no sector unhampered. Owing to these facts, the need to make funds available to alleviate inconveniences the virus might’ve caused became imminent. This article contains a swift insight of all you need to know about how to access these funds.
What you should know about COVID-19 Loan?
COVID-19 loan is loan offered by Kenyan government to small and medium-sized businesses. This loan is meant to help them survive the ‘COVID-19’ recession with other changes to make the credit to be accessible.
The government of Kenya knows that the revenue of businesses is dropping. Besides that, citizens of South Africa continue to lose their jobs. In order to sustain their jobs and keep businesses from closing down, the idea of cOVID-19 loan becomes wonderful.
What are the requirements for cOVID-19 loan?
The requirements are essential when applying for a COVID-19 loan. Whether you’re taking a personal loan or a business loan. These requirements give the lenders enough details to approve your loan.
- The facility the business needs to fund especially, which is up to 6 months of qualifying expenses
- Present a cash flow projection. Also substantiate the facility you request.
- Provide an account of the business’ year-to-date management accounts. Also note the current financial position and financial performance.
- Most recent financial statements of the business
- Proof of Kenyan Revenue Service (KRS) registration
- The business’ constitutional documents
- Ensure you did not apply for the same loan from a different lender
How can my business qualify for the cOVID-19 loan?
Mostimes, qualification rules might vary depending on the loan provider. While some might be rigid on the requirements, others might seem a little loose. According to research, the following are obtainable ways to qualify for a COVID-19 loan;
- Application must be on behalf of a company, statutory body corporate, close corporation, sole proprietorship, trust or partnership, association, joint venture or any similar entity. However, you must not be state-owned entities, listed companies and companies with capital market funders or funding instruments.
- Your business has to be in good standing as at 31 December 2019
- The business must be registered with KRS
- Your business must have no existing capacity to borrow
- Ensure that your business accrued negative impact of lockdown and requires funding to restart operations during different levels of lockdown
- You must not apply for this loan at any other lender
How can I apply for the cOVID-19 loan?
You must make your loan request known before your lender approves it. For every form of loan, you must apply according to the way your lender operates.
Apply for the cOVID-19 loan in the following ways:
- You can apply online by visiting their website. Simply do it with your smartphone, tablet, or personal computer. Log into their website and follow the prompts.
- You can also call their customer service representative. Make your loan request known to them and then follow their instructions on how to get your loan.
How long will the cOVID-19 loan last?
Before any business gets a loan, it is important to find out how long the maximum payback range. The cOVID-19 loan tenure is from 6 months and above.
The small and medium-sized businesses in South Africa have seen an enormous disarray during the lockdown. Because the government of South Africa sought the right move to contain the spread of the dreaded coronavirus. And this loan offers the lifeline to get businesses back to where they were before the lockdown.