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Covid-19 Loan Guarantee Scheme Reviewed

July 28, 2020

National Treasury

The Covid-19 Loan Guarantee Scheme has been reviewed to make it easier to access.

In a statement, national treasury indicated that “some of the changes include that bank credit assessments and loan approvals will be more discretionary and less restrictive, in line with the objectives of the scheme”.

Clients will also now be able to access the loan over a longer period.

According to treasury, the Covid-19 Loan Guarantee Scheme “provides loans, substantially guaranteed by government but with some of the risk shared by banks, to eligible businesses to assist them during the COVID-19 pandemic”.

Borrowed funds can be used for operational expenses, such as salaries, rent and lease agreements and contracts with suppliers.

Changes include business restart loans to be available; draw down period extended from three months to a maximum of six months; interest and capital repayment holiday extended; turnover cap replaced with a maximum loan amount of R100 million and sole proprietorships now explicitly included.

Treasury also announced that government is “exploring the option of working with non-bank lenders willing to share the risks of lending to their client companies in distress”.

Meanwhile, in Government Gazette 43543, the South African Revenue Service published amendments to Customs and Excise Act Schedules:


• Notice 806 – Amendment to Part 3 of Schedule No. 2, by the insertion of safeguard items 260.03/7318.15.41/01.08; 260.03/7318.15.42/01.08 and 260.03/7318.16.30/01.08 to implement safeguard duty of 54.04% on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft) – ITAC Report 620 – 24 July 2020 up to and including 23 July 2021;
• Notice 807 – Amendment to Part 3 of Schedule No. 2, by the insertion of safeguard items 260.03/7318.15.41/01.08; 260.03/7318.15.42/01.08 and 260.03/7318.16.30/01.08to implement safeguard duty of 52.04% on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft) – ITAC Report 620 – 24 July 2021 up to and including 23 July 2022;
• Notice 808 – Amendment to Part 3 of Schedule No. 2, by the insertion of safeguard items 260.03/7318.15.41/01.08; 260.03/7318.15.42/01.08 and 260.03/7318.16.30/01.08 to implement safeguard duty of 50.04% on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft) – ITAC Report 620 – 24 July 2022 up to and including 23 July 2023;
• Notice 809 – Amendment to Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99 to increase the rate of customs duty on sugar from 418.61c/kg to 527,75c/kg in terms of the existing variable tariff formula – Minute M01/2020 – 24 July 2020.