Disbursement Of Economic Stimulus Funds In October
Updated on: Sep 25, 2020
Disbursement for economic stimulus funds will commence next months, Laikipia deputy governor John Mwaniki has confirmed.
The processing of applications is going on. Already 2,000 applications out of a target of 5,000 businesses have been approved.
Disbursement of loans to the successful businesses will begin in October after the passing of the county allocation of revenue Bill 2020 by the senate, the deputy governor said.
The government has grown the kitty to over Kes. 3 billion through a partnership with five banks so far. Co-operative, KCB, Equity, Family and National banks are the first to enter in this partnership. Absa and Stanbic banks are in the process of joining the noble course.
The fund has grown to over Kes. 3 billion from the banks and is meant to jumpstart the economy of Laikipia, said Mr. Mwaniki.
The county government is training 200 business development officers to help businesses put together application forms for accessing loans and also to handhold them after they receive the funds.
The county government is subsidizing the loans by paying five percent and the borrow-ers to pay the rest seven percent. This is meant to stimulate the economy after the devastating effects of Covid-19 pandemic. The funds will help the traders to restock their businesses and stabilize them during their initial stages of reopening.
The main target businesses to receive the loans are those in retail trade, tourism, transport, agriculture, and hospitality (eateries). There is a checklist to guide borrowers on the requirement for accessing the funds that has been released.
KCB bank, for example, has designed certain protocols to guide on how to acquire the subsidized loans and the minimum qualifications.
Non-KCB account holders must open one where the loan will be deposited and for close monitoring.
For the general businesses, the enterprise must already be in existence and not a startup and it must be within the county boundaries. To qualify for a loan, the business activities must be legally accepted.
Business trading license, county daily receipts, and approval for chemists, entertainment places, and hotels exist for the year applying must be attached as proof that it is a business that has been operating in the county.
Also, the applicants must produce their original Identity card, KRA PIN and registration certifi-cate if trading under such name.
For the limited company identification, certificate of incorporation, company PIN, Minutes sanctioning borrowing, National identity cards as well as KRA pin for the directors must be produced.
During application of the loans, applicants must clearly state and present documents to show what kind of organization they run.
Is it sole, partnership enterprise or company? Such documents must match trading license name.
The businesses are expected to indicate the actual number of employees they have.
Confirmation of existing of business records receipts and invoices to confirm growth of the enterprise, if possible will be done before issuance of a loan.
Further, applicants must provide their places of residence, asserting whether it is a residential place or owned by the applicants.
The processing of applications is going on. Already 2,000 applications out of a target of 5,000 businesses have been approved.
Disbursement of loans to the successful businesses will begin in October after the passing of the county allocation of revenue Bill 2020 by the senate, the deputy governor said.
The government has grown the kitty to over Kes. 3 billion through a partnership with five banks so far. Co-operative, KCB, Equity, Family and National banks are the first to enter in this partnership. Absa and Stanbic banks are in the process of joining the noble course.
The fund has grown to over Kes. 3 billion from the banks and is meant to jumpstart the economy of Laikipia, said Mr. Mwaniki.
The county government is training 200 business development officers to help businesses put together application forms for accessing loans and also to handhold them after they receive the funds.
The county government is subsidizing the loans by paying five percent and the borrow-ers to pay the rest seven percent. This is meant to stimulate the economy after the devastating effects of Covid-19 pandemic. The funds will help the traders to restock their businesses and stabilize them during their initial stages of reopening.
The main target businesses to receive the loans are those in retail trade, tourism, transport, agriculture, and hospitality (eateries). There is a checklist to guide borrowers on the requirement for accessing the funds that has been released.
KCB bank, for example, has designed certain protocols to guide on how to acquire the subsidized loans and the minimum qualifications.
Non-KCB account holders must open one where the loan will be deposited and for close monitoring.
For the general businesses, the enterprise must already be in existence and not a startup and it must be within the county boundaries. To qualify for a loan, the business activities must be legally accepted.
Business trading license, county daily receipts, and approval for chemists, entertainment places, and hotels exist for the year applying must be attached as proof that it is a business that has been operating in the county.
Also, the applicants must produce their original Identity card, KRA PIN and registration certifi-cate if trading under such name.
For the limited company identification, certificate of incorporation, company PIN, Minutes sanctioning borrowing, National identity cards as well as KRA pin for the directors must be produced.
During application of the loans, applicants must clearly state and present documents to show what kind of organization they run.
Is it sole, partnership enterprise or company? Such documents must match trading license name.
The businesses are expected to indicate the actual number of employees they have.
Confirmation of existing of business records receipts and invoices to confirm growth of the enterprise, if possible will be done before issuance of a loan.
Further, applicants must provide their places of residence, asserting whether it is a residential place or owned by the applicants.
