Development Bank to kick off COVID19 business relief loans next week
The Development Bank of Namibia’s (DBN) COVID-19 business relief loans which will provide finance equivalent to three months up to a maximum of six months working capital for enterprises affected by COVID-19, will kick off on 18 January.
The term of the loan will be a maximum of 60 months and will be available to both existing DBN SME borrowers and to enterprises which are not yet clients of the Bank, as long as these enterprises have been in operation for at least 12 months, and meet the qualifying criteria.
The funds are the result of the N$450 million concessional loan agreement entered between the DBN and the Development Bank of Germany (KFW), which concluded last month.
DBN CEO, Martin Inkumbi said it is hoped that the financial intervention will contribute to preserving continuity of SME business activities and to build a foundation for recovery.
Although the Bank will – through its normal SME lending – continue to finance SME startups, the priority for the Covid-19 business relief loans will be to preserve business continuity and preserve jobs, and therefore these loans are targeted at existing enterprises.
The Bank forecasts that the funding will offer financial relief to around 200 SME’s. The Bank will customize the loans based on individual enterprise needs. Industries such as tourism, hospitality, and transport and logistics that have experienced the largest loss of revenue due to lockdown-related effects will be prioritised.
The facility may also be used for diversifying into new business areas that help strengthening resilience of existing companies for future shocks.
Information on the qualifying criteria can be obtained from the Bank’s website at www.dbn.com.na/relief from Monday, 18 January, or on information pamphlets available at all DBN offices in the course of late next week. These can also be emailed to interested parties on request.