Archives: Support Mechanism

COVID-19 Loan Scheme

This loan scheme helps to finance the working capital of enterprises with annual turnover less than Rs10 million.

• Loan Amount Ceiling: Rs1M
• Interest rate at 1.5%
• Repayment period of 3 years
• Security: General floating charge on company’s assets plus general floating charge on main shareholder

Wage Support scheme for
Export Oriented (goods) Enterprise

The purpose of this scheme is to provide financial assistance to Export Oriented (Goods) Enterprises impacted by the COVID-19 in order to support payment of wages of their employees up to June 2021.

• Loan Amount Ceiling: Depending on Entities request
• Interest rate at 2% p.a
• Repayment period up to five years
• Eligibility Export Oriented Enterprises as per Ministry of labour, Human Resources Development and Training

Business Loan

The purpose of this loan is to facilitate the purchase of land for agricultural purpose, trade and services, working capital and purchase of vehicles to be used for businesses.

• Loan Amount Ceiling: Up to Rs5 Million
• Interest rate at 8.5% p.a
• Repayment Period up to five years
• Eligibility: Business Community

Agro Industry

The purpose of the loan is to meet the purchase cost of machinery equipment for transformation processing, packaging equipment, construction of warehousing facilities and transfer of technology. The applicant should be registered with FAREI/SME Mauritius/Cooperatives /companies.

• Loan Amount Ceiling up to a maximum of Rs5 million (Can be increased to Rs10 million with the approval of the Board)
• Interest rate at 2% p.a
• Moratorium up to a maximum of one year and repayment period up to seven years
• Security: Fixed charge and /or General Floating charge where applicable
• Debt /Equity: 90:10

Enterprise Modernisation
Scheme

The purpose of this scheme is to facilitate the purchase of machinery and equipment by enterprises with annual turnover of up to Rs10 million.

• Interest rate of 3.5%
• A grant of 15% up to a maximum of Rs150,000

Concessionary loans to
women entrepreneurs

For women entrepreneurs, DBM Ltd is providing loans at a concessional rate of 0.5 percent per annum. The loan amount will cover up to 90% of cost of project up to a ceiling of Rs500,000.

Terms and Conditions

• •  As per DBM policy

Equity Financing

The equity financing is applicable to companies with turnover above Rs10 million but below Rs250 million.  The investment of SME Equity Fund will start from Rs500,000 up to a maximum of Rs25 Million.

Terms and Conditions are as follows:

• • Promoter(s) must have at least 51% equity stake in his company.  SME Equity Fund can only contribute up to a maximum of 49% of total equity in the company.
  • Investment of SME Equity Fund is by way of Redeemable Preference Shares. Equity by way of Ordinary Shares may also be considered.
  • The redemption of Preference Shares is at a cumulative dividend of 6% p.a or higher of Net Asset Value (capped at 11%).
  • The repayment for funding request done under COVID 19 Support Program, will be considered on a case to case basis and is expected to be within 2 to 5 years.
  • Financing will not be considered for businesses in the gambling and real estate sectors; those which nature of businesses/source of funds are unclear and excessive debts.
  • General KYC Requirements (indicative and non-exhaustive – vary by project).

Investment support
through Crowd-lending

The investment support through crowd-lending is a fast and simple financing mechanism for every key moment of your growth: working capital, capex, project finance, supply chain finance and microcredit.  This is available through Fundkiss Technologies Ltd, with the assistance of SME Equity Fund.

• Interest rate at 12-15% p.a – Unsecured loans
• Repayment Period up to 5 years
• Eligibility: Minimum of 2 years of operations for a SME and 3 years of operations for a Sole Trader

Terms and Conditions are as follows:

• • Fundkiss Technologies Limited Terms and Conditions apply.
  • Financial offer is subject to the approval of the project by the Fundkiss Credit Committee.
  • Financing to be disbursed to the borrower at the condition that 100% of the amount is raised from the lenders registered on Fundkiss.mu.

 SME Factoring
Scheme

The objective of this scheme is to provide cash-flow to entrepreneurs via the factoring of their credit sales invoices through Non-Bank Financial Institutions. This scheme is available to enterprises with annual turnover of up to Rs50 million and at an interest rate of 3.9%.

Terms and conditions are as follows:

• Enterprises should hold a Valid BRN with at least 1 year of operation.
• Enterprises involved in manufacturing and other productive sectors, agro-industry, specific services.
• Applicable to invoices relating to Sales on a Business to Business basis.
• Entrepreneur should be of Mauritian nationality and majority shareholding held by Mauritian.

Leasing Equipment Modernisation
Schemes (LEMS)

The aim of LEMS is to enable enterprises, including SMEs, to enhance their competitiveness by investing in productive equipment, upgrading production infrastructure and reducing costs.

The LEMS schemes are available to enterprises with an annual turnover of up to Rs1.5 billion. They are provided by the leasing companies mentioned further below at a reduced interest rate ranging between 2.5% and 3.35% per annum, as follows:

Terms and Conditions are as follows:

• The enterprise should operate in manufacturing, agro-industry or other productive sectors
• The company should be incorporated in Mauritius.
• Majority Shareholding should be held by Mauritian(s).
• Hold a valid BRN with at least 1 year of operation.
• If business forms part of a group, annual turnover of the group will be used.

For the acquisition of second hand equipment, individual valuation report should be provided by a professional

Export Factoring Scheme

The objective of this scheme is to provide cash-flow to entrepreneurs via the factoring of their export sales invoices. This scheme is available to exporting companies with an annual turnover not exceeding Rs250 million at an annual interest rate of 3% for dollar and 2.75% for Euro.  The maximum amount is USD400,000 or EUR 400,000 but not exceeding the equivalent of Rs15M.

Terms and Conditions are as follows:

• Companies incorporated in Mauritius with a least one year in operation
• Majority Shareholding should be held by Mauritians
• Operating in Manufacturing, Agro-Industry and other productive sectors. Hygienic goods included in list of eligible products
• Export Credit Insurance required

Micro Entity
Financing Scheme

The purpose of this scheme is to enable Micro and Small Entities with a turnover not exceeding Rs10 million to have access to finance at competitive rates to lower down their cost of production, improve their productivity, become more sustainable and contribute to the creation of jobs

Corporate Guarantees
to banks

The ISP Ltd will issue corporate guarantee to banks to enable them to grant loans to companies affected by COVID-19.

Terms and Conditions are as follows:

• Application rejected by Banks are referred to ISP for further consideration
• Total Amount: Payable on a case to case basis

Equity Participation Scheme

This scheme has as objective to assist businesses with an annual turnover of up to Rs250 million to overcome their financial difficulties in the wake of COVID-19.

• Decision-making takes into account key investment criteria and a balanced risk-taking approach.
• Projects to be analysed at level of Management, examined at the level of the Investment Committee and would then be recommended to the Board for final approval.

Corporate Guarantee

The corporate guarantee is being provided to banks on behalf of eligible economic operators directly affected by COVID-19.

• The maximum amount of the guarantee shall be 60% of Outstanding Liabilities for SME’S and 50% of the Outstanding Liabilities for all other Eligible Economic Operators.
• Tenure for a period of 48 months with moratorium of up to 9 months.

Bank of Mauritius Special
Relief Programme

A Special Relief Amount of Rs5 Billion has been provided to meet cash flow and working capital requirements of economic operators which are being directly impacted by COVID-19.

• This is available through commercial banks up to 30 June 2021, to all sectors impacted by COVID-19, including SMEs.
• Interest rate of 1.5% per annum.
• There will be a moratorium of six months on capital and interest repayments.
• The repayment period is extended to 48 months, with a moratorium period of up to 9 months.