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Empowerment Scheme, Credit Guarantee Scheme
The Empowerment Scheme provides cover up to R5m of bank facility at 60% , with the fee payable at 2,5% p.a. in advance. Duration is 36 months initially but can be extended twice for a period of 12 months each time.
Businesses that will qualify for this scheme must have one of the following qualifying criteria in relation to the nature , purpose for the business or its effect on SMME's:
Substantial job creation in an area where very little economic activity takes place.
Labour intensive projects.
An economic empowerment transaction which entitles the borrower to acquire a controlling interest in the SMME within a period of 2 (two) years from the date the facility is granted by the bank.
Management buy-out which entitles the borrower to acquire a controlling interest in the SMME within a period of 2 (two) years from the date the facility is Granted by the bank.
