The Covid-19 loan guarantee scheme will be extended by three months.
The scheme was launched as part of government's R500-billion stimulus package to support the economy given the impact of the Covid-19 pandemic. The scheme is based on a partnership between National Treasury, the SA Reserve Bank (SARB) and the Banking Association of South Africa (BASA). It is meant, specifically, to support struggling businesses.
The period for which businesses could draw down loans was to end on 11 April 2021, for most participating banks, read a statement jointly issued by the parties on Monday.
"After further consultation, the National Treasury, the South African Reserve Bank and the BASA have 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. The further extension of three months will enable an orderly winding down of the scheme and allow those businesses who have applications already lodged to be assessed," the statement read.