Over 660 SME owners benefit from PNG government support loans

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Over 660 owners of small and medium enterprises (SMEs) have benefited from the loan facility supported by the national government, the SME Credit Enhancement Scheme Loan (SME CESL) through BSP Financial Group Limited (BSP) with more than K90m financed at 9 November 2021.

According to BSP Group CEO Robin Fleming, since the announcement in May of the reduction in the capital requirement from 30% to 10%, more SME owners have benefited from better access to the enhancement loan. credit.

“This also included changing the maximum loan amount from a maximum of KK 3 million to KK 5 million at a low fixed interest rate of 5% for a repayment period of up to 15 years.”

“Since the relaxation of the capital requirement, we have been able to finance 667 SMEs with a total of K 92.1 million with an average loan of K 140,000 out of the K 100 million allocated to BSP under of CESL, ”said Fleming. Mr Fleming added that there have been only a small number of defaults under the facility with the current level of defaults well below thresholds acceptable to banks.

BSP SME chief Jeffrey Singer added that in addition to funding 667 SMEs across all sectors with 70% retail and other businesses and in provinces with the Highlands and Momase regions combined at 65%, BSP also has 233 pending requests worth 57.9 million euros. .

“The loan appraisal includes SMEs able to meet BSP’s normal credit requirements to access financing under the program. This includes SME borrowers demonstrating their ability to meet outstanding loan commitments and are able to provide acceptable collateral to cover loan amounts. Emphasis is also placed on a borrower’s ability to comply with regulatory requirements, including meeting their tax obligations each year, ”said Mr. Singer.

BSP has an ongoing application pipeline worth around K40 million and, under the agreement with the government, BSP continues to provide small business owners with access to the facility, although the Total approvals will exceed K100 million by the end of the year based on additional government funding. will be forthcoming and also based on repayments from existing borrowers to re-lend funds from the original K100.

The BSP SME Credit Enhancement Scheme is open to all SME owners and includes the option to refinance existing loans. Customers can inquire at all BSP branches across the country and in particular at the three BSP business centers dedicated to SMEs in Vision City – Port Moresby, Goroka and Lae. Non-BSP customers are also eligible.

Declaration

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