Business Stimulus Fund Ready For Disbursement
Updated on: Nov 13, 2020
Laikipia businesses can now access stimulus funds after the county assembly last week approved the Laikipia County Business Stimulus Fund Regulations 2020 .
The regulations provide a legal framework for the administration of the fund and empower the executive to partner with financial institutions to facilitate the businesses with the subsidized loans. This is intended to cushion local businesses from the impact of Covid-19 pandemic which has disrupted their operations.
The county government has set aside more than Ksh.90 million towards the fund with several banks expressing interest by committing more than Ksh. 3.3 billion to support Laikipia businesses recover from the devastating effects of pandemic.
The stimulus fund targets around 5,000 businesses across all the 15 wards. It will enable them stay afloat during this pandemic. Already, the government has trained 200 business development officers who will offer advice and guidance to business operators.
The officers will help entrepreneurs familiarize with requirements of the application process to be able to access the fund.
Once they succeed in accessing the funds, the BDOs will work hand in hand through follow ups sessions and be available to offer their assistance to the entrepreneurs whenever needed.
The facilities of the loan include working capital, asset finance, local purchase orders (LPOs), group loans and agribusiness loans. The County Government will foot in 5% of the interest with the business financing the rest 7%.
For those businesses which have already applied, the appraisal of the loan applications will start immediately.
To qualify for the loan, a business must be in operation for at least six months as the loan is meant to boost businesses hard hit by the pandemic.
The countys commitment to chip in and cater for five per cent is an encouragement to increase production in the county.
The regulations provide a legal framework for the administration of the fund and empower the executive to partner with financial institutions to facilitate the businesses with the subsidized loans. This is intended to cushion local businesses from the impact of Covid-19 pandemic which has disrupted their operations.
The county government has set aside more than Ksh.90 million towards the fund with several banks expressing interest by committing more than Ksh. 3.3 billion to support Laikipia businesses recover from the devastating effects of pandemic.
The stimulus fund targets around 5,000 businesses across all the 15 wards. It will enable them stay afloat during this pandemic. Already, the government has trained 200 business development officers who will offer advice and guidance to business operators.
The officers will help entrepreneurs familiarize with requirements of the application process to be able to access the fund.
Once they succeed in accessing the funds, the BDOs will work hand in hand through follow ups sessions and be available to offer their assistance to the entrepreneurs whenever needed.
The facilities of the loan include working capital, asset finance, local purchase orders (LPOs), group loans and agribusiness loans. The County Government will foot in 5% of the interest with the business financing the rest 7%.
For those businesses which have already applied, the appraisal of the loan applications will start immediately.
To qualify for the loan, a business must be in operation for at least six months as the loan is meant to boost businesses hard hit by the pandemic.
The countys commitment to chip in and cater for five per cent is an encouragement to increase production in the county.
