Centenary Bank to support more than 500 Small businesses to recover

By Charles Katabalwa

27^th Jan 2022

Over 500 small businesses affected by the COVID-19 pandemic are expected to benefit from-low cost financing offered by Centenary Bank, under the special Small Business Recovery Fund.

According to a report by the International Finance Corporation (IFC) on the COVID-19 effects on SMEs, 89% of the businesses reported a decrease in turnover on average by 49%.

73% of the Small and Medium Enterprises have current cash flow problems while two-thirds of them experienced lower demand for their products and services because of the pandemic according to the findings.

The report also indicates that 90% of the businesses have received bank funding with restructured loans being the most important means of support.

Beatrice Lugalambi, the General Manager Corporate Communication and Marketing at Centenary Bank said that the COVID-19 pandemic greatly affected the economy leading to the closure of some businesses and stagnation of others which has forced the bank to establish the Small Business Recovery Fund to bolster the activities of many small businesses that faced the adverse effects and wish to get back on track.

Lugalambi adds that to be eligible for the poor fund, the prospecting small business must be employing between 5-49 people with an annual turnover of UGX 10 million to 100 million shillings and total assets of between UGX 10mshs to 100mshs and the funds can only be borrowed once without top-ups but multiple borrowing from other participating Financial Institutions is not allowed.

She has disclosed that Centenary Bank has set up conditions that they believe are favorable for the eligible small business funding, where an entity can borrow up to UGX 100 million and the borrowing businesses will be given a minimum of 6 months and a maximum of 4 years to repay the loan, including a one-year grace period.

She calls upon Small business owners to seek financing options from the bank to enable them kick start their operations following the full reopening of the economy and the funds is accessible at any Centenary Bank branch countrywide.