VICTORIA, Seychelles — Small businesses affected by the December 7 disaster will be able to apply for an interest free loan of up to R100,000 from Monday, under the new 7th December Micro Business Scheme administered by the Development Bank of Seychelles. The loan is intended to help businesses restock, replace damaged equipment, carry out minor repairs, and meet day to day running costs such as rent and salaries. A total provision of R18 million has been set aside for the scheme, which is expected to support around 180 businesses in its first phase.
The scheme was announced at a press conference at the Industrial Estate Agency headquarters in Providence by the Minister for Investment, Entrepreneurship and Industry, Devika Vidot. The Secretary of State, Patrick Payet, the chief executive of the Development Bank of Seychelles, Jean Preira, and the chief executive of the Enterprise Seychelles Agency, Lisa Lautoy, also attended. Minister Vidot said applications would open on Monday January 22 2024 and would be submitted entirely online through the DBS portal, using the link marked 7th December Micro Business Support Scheme. The deadline for applications is June 2024.
Applicants must meet several eligibility criteria. The business must have had a gross turnover of less than R2 million in 2022, be tax compliant, and hold its latest tax clearance certificate or judgements for 2021 and 2022. The business must also be located in the vicinity of the December 7 incident. Each successful application will carry a R100 processing fee, which will be deducted from the loan amount along with any legal fees. A guarantor or alternative security valued at 125 percent of the loan amount is required.
Mr Payet stressed that no interest would be charged on the loans. He added that the structure mirrors the loan scheme put in place during the Covid 19 era, and acknowledged that some borrowers had struggled to repay. Statistically, he said, the bank had identified around 218 businesses in 2019 that would have qualified for this kind of support. The Enterprise Seychelles Agency will be on hand to help applicants who do not have internet access, and to answer questions from members of the public.
Minister Vidot also noted that larger macro businesses, which require agreement with the terms and conditions of commercial banks, would receive further information in the coming weeks. She described the new scheme as a practical response to a difficult period for small operators, many of whom lost stock and trading days in the December 7 incident. The government, she said, is determined to keep recovery support flowing through the institutions best placed to deliver it.
