New Circular Provides Grants and Loan Facilities for Small and Micro Businesses

COLOMBO (News 1st) -The circular was issued in conjunction with the circular released recently to restore public life, which had been disrupted due to the emergency disaster situation.

Accordingly, the following grants and loan facilities have been introduced:

Individual, small, and micro businesses registered with the Ministry of Industries or a Divisional Secretariat are eligible for a grant of 200,000 rupees.

Unregistered retail businesses operated within a permanent home-based building are eligible for a grant of 50,000 rupees.

For unregistered manufacturing industries and greenhouses, a grant of 50,000 rupees will be provided per unit.

Temporary business locations, including pavement hawkers and mobile vendors, are eligible for a grant of 25,000 rupees.

Business property owners who consent to receive compensation without a formal damage assessment will be paid a grant of 500,000 rupees.

In addition to the above grants, the following loan facilities have also been provided:

Furthermore, the Treasury has initiated a new loan scheme for working capital required by entrepreneurs to restart their damaged businesses, as well as a separate loan scheme for businesses requiring further investment.

Accordingly, facilities have been arranged through the banking system to obtain working capital loans ranging from 250,000 rupees to 25 million rupees at an interest rate of 3 percent to restart damaged businesses.

These loans must be repaid within 03 years, subject to a 06-month grace period.

Arrangements have also been made for entrepreneurs whose businesses were damaged to obtain loans up to 25 million rupees through banks at an interest rate of 5 percent, with a 12-month grace period, repayable over 10 years.

These are provided as investment loans for business resurgence.