Question NW3982 to the Minister of Finance
22 December 2023 - NW3982
Skosana, Mr GJ to ask the Minister of Finance
What (a) is the performance of the Bounce-Back Support Scheme relative to the COVID-19 loan guarantee scheme and (b) are the profiles of the beneficiaries?
Reply:
a) In 2020 National Treasury launched the Covid Loan Guarantee Scheme (LGS) as part of a package of measures to help small and medium business survive the most severe lockdowns related the global Covid pandemic. The LGS enabled eligible businesses to access loans via commercial banks in terms of a finance facility administered by the Reserve Bank. At the termination of the LGS scheme (27 March 2021), banks had approved 14 827 in loans, with the LGS providing R14,6 billion in loans.
Following the conclusion of the LGS, South Africa experienced another economic set-back due to civil unrest in KwaZulu-Natal and Gauteng from the period 8 July 2021 to 19 July 2021. The civil unrest resulted in damage to business properties and caused major supply chain disruptions. The impact of the civil unrest was mostly felt by businesses, some of which were still recovering from economic losses caused by the Covid-19 pandemic induced lockdowns.
The Bounce Back Support Scheme (BBS) was launched in April 2022 and was terminated in April 2023. This scheme operated on an opt in basis. The BBS resulted in 3211 small businesses being provided with support. The total disbursed amounts was around R 1 billion (R935,385,620.)
2. Data on the geographic and other demographic information was not collected.