What are the terms and conditions under Small Business Recovery Fund?

What are the terms and conditions under Small Business Recovery Fund?

i. Loan Amount

The maximum loan amount to a single borrower is UGX 500 million; however, there is no minimum loan amount.

ii. Loan Term

The minimum loan period is 6 months, and the maximum is 4 years with a maximum grace period of 1 year, depending on the nature of the project as may be determined by the respective Participating Financial Institution.

iii. Interest Rate

The interest rate to be charged by the Participating Financial Institution should not exceed 10% per annum and shall be on a reducing balance.

iv. Facility Fees

Facility fees charged to the client under the Agricultural Credit Facility should not exceed 0.5% of the total loan amount. Other charges will be borne by the borrower.

v. Repeat Borrowing

For customer who have adequately serviced their Small Business Recovery Fund loan, they qualify for repeat borrowing as long as the business has sufficient cashflows to service the new repayments.