702: Small Business Covid fund only paid out 4% of the allocated funds
Small Business Institute CEO John Dludlu says compliance can be sorted at a later stage but now let’s save livelihoods.
John Perlman on Afternoon Drive speaks to Small Business Institute CEO John Dludlu about the fact the COVID-19 relief fund paid only out 4% of the allocated funds for small businesses by the end of June.
The payouts, even if there could have been some developments since then, seem to low given the centrality of the sector to the economy and the blow the industry took because of their lack of access to things such as cash flow and savings.
“It is devastating and more depressing than we thought. Not surprising but disappointing. We’ve been looking at it right from the start the relief measures when they were announced in April.” – John Dludlu, CEO – Small Business Institute
“It is reported as 4%. It is also not surprising because between commitment and disbursement is a different story. What you commit may not end up being disbursed. There may be other problems.” – John Dludlu, CEO – Small Business Institute
“There were stringent conditions. None of the ordinary businesses would qualify and be compliant with all those documents. We felt that the government was prioritising compliance over and above the need to save livelihoods.” – John Dludlu, CEO – Small Business Institute
“The Oppenheimers and the Ruperts set aside R2-billion in special facilities and they made conditions very clear about how this money has to go. It has to go to employees and businesses. And it went out. So they listened to all of us here. They did not concentrate on compliance, formalising the sector of the economy. They concentrated on the urgent need at hand at the time, which was saving livelihoods and saving incomes.” – John Dludlu, CEO – Small Business Institute
“Small businesses need grants, not more loans. They don’t need more debt. Let us work together with the private sector, labour and government in ensuring that we actually look into all these bottlenecks. We can resolve these other problems about compliance at a later stage but today let’s save livelihoods.” – John Dludlu, CEO – Small Business Institute
by 702 – https://www.702.co.za/articles/395115/small-businesses-need-grants-not-loans-they-don-t-need-more-debt