Minister of Economic Development Fayyaz Ismail has announced the government will be introducing a stimulus package for Small and Medium Enterprises (SMEs).
In a tweet, Minister Fayyaz said the government is working on a development assistance stimulus for SMEs especially gyms, saloons, cafés, restaurants and more. He added the work is taking more time due to many in his team becoming sick with COVID-19.
The announcement comes at a time when SMEs have begun closing down over financial difficulties due to the COVID-19 pandemic. The government has imposed a curfew and ordered the closure of cafés, restaurants, gyms, and saloons as part of the efforts to control the spike in COVID-19 cases.
The government previously assisted SMEs by providing loans through the SME Development Finance Corporation (SDFC). A total of 119 SMEs had applied for the loans since SDFC reopened loan applications in February, with most of the loans requested by SMEs in tourism industry and fisheries sector.
Last year, the corporation had also provided relief loans to SMEs and sole proprietorships affected by the COVID-19 pandemic. As such, SDFC has disbursed loans worth over USD 21.3 million for 1,969 individuals and businesses under the economic relief package introduced by the administration last year. This includes USD 20.2 million issued to 1,254 SMEs and USD 1.1 million issued to 615 sole proprietors.