On 12 May 2020 the National Treasury, the South African Reserve Bank and the Banking Association South Africa (BASA) launched the Loan Guarantee Scheme (LGS), designed to support small businesses that were experiencing financial distress as a result of the Covid-19 pandemic.
By 27 March 2021, almost one year later, 14 827 loans to the value of R18,16 billion were approved.
The end of the Availability Period (the period for draw down of loans) was 11 April 2021 for most participating banks under the guarantee scheme. But after consultation it was agreed to extend the deadline by three months to 11 July 2021, and in the process to harmonise this deadline for all participating banks. The guarantee scheme will continue to service all loans advanced up to the extended date, for up to five years.
Read more in the media statement