The First National Bank Botswana (FNBB) has recently partnered with government on a Loan Guarantee Scheme as part of broad measures to mitigate the economic impact of the COVID-19 pandemic.
The Government COVID-19 Loan Guarantee Scheme is worth P1 billion and will be administered by Botswana Export Credit Insurance (BECI).
Government as the guarantor, will cover up to 80% of the loan amount requested by FNBB. BECI will then regard the loan application valid until November 30, 2020.
The tenor of the guarantee will provide cover for 24 months from the date BECI approves. Under the scheme, companies are eligible to borrow up to P25 million.
FNBB chief executive officer, Steven Bogatsu said participation in the Loan Guarantee Scheme allows the Bank to offer businesses the financial support needed to sustain themselves as they navigate the challenges and changes the world is currently undergoing.
“At FNBB, we understand that the pandemic has introduced a new set of challenges for businesses. The purpose of the guaranteed facility is to fund working capital requirements to cover operating and administrative expenses to ensure
All businesses are eligible to apply with FNBB except businesses with direct government shareholding and state-aided entities such as non-governmental organisations and parastatal entities.
“I would like to encourage eligible customers to take up this opportunity that provides financial relief to their businesses. Customers should engage their Relationship Managers or their branches for applications,” Bogatsu added.
The businesses that wish to apply should be tax compliant, duly registered with the Companies and Intellectual Property Authority, have been in operation and bankable for at least a year prior to April 3, 2020, demonstrate how COVID-19 has disrupted their business, and provide a sustainable business model. Further the Bogatsu said FNBB continues to take appropriate measures to ensure the economic relief and alleviate some of the negative impacts of the COVID-19 pandemic to affected individuals and businesses