Media Statement: A lifeline for black business as NEF launches an Economic Distress Fund
The National Empowerment Fund (NEF) in partnership with the Department of Trade, Industry and Competition (the dtic) has established an Economic Distress Fund to provide concessionary business loans to Black-owned and managed enterprises that are under financial distress as a result of the COVID-19 pandemic “to aid their recovery, sustain existing jobs and improve productive capacity”, says CEO, Ms Philisiwe Mthethwa.
“The COVID-19 pandemic has devastated the South African economy and placed the livelihoods of businesses and employees at stake. Black businesses, which historically have been constrained by the lack of access to affordable capital, have been dealt a particularly heavy blow. That is why the Economic Distress Fund will support black companies in accordance with the legislated mandate of the NEF, to mitigate the challenges that have been caused by the ongoing pandemic. Funding will be in the form of loan and equity and a maximum interest rate of 2.5% will apply,” explains Ms Mthethwa…
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