Small, Medium and Micro Enterprises (SMMEs) that have been crippled by the Covid-19 pandemic. These companies also need a lifeline if they are to survive and recover after the lockdown is lifted.
Mahomed Zubeir Moosa, chief executive officer of Willowton Group and founder of the GFHF said that a combined loan of R85m from Willowton Group and its shareholders, together with R10m funding by Al Baraka Bank and R5m from the South African Muslim Charitable Trust provided the startup capital for the trust.
The aim is to launch with R100m and Moosa called on businesses across the country to loan money to the GFHF with the ultimate aim of raising R500m within the next few weeks. This will be split into small loans which will be effective for two years. Businesses will only need to begin to repay the loans, in 12 monthly instalments, after the first year. The loan will be interest-free, profit free and admin-cost free basis
The fund will be administered by Al Baraka Bank. All lending to be fully Shariah-compliant and will meet FICA and other banking regulations.
Those who are interested in applying should log onto the website https://givingforhope.co.za/ and make an application. Loan applications will be accepted from potential clients from 15 April with payouts to clients expected to begin by the end of April. Commitment by funders must be made by the end of April and funding to be in by the end of June 2020. No repayment is expected in the first 12 months and thereafter all loans are expected to be repaid to the GFHF by the end of December 2022, the trust will repay loans to contributors and cease operating by February 2023.
Moosa said that loans would be open to all SMME’s irrespective of sector, race, gender or religion. However, loans would not be advanced for passive income type businesses such as property investment or alcohol or gambling related business.
As one of the main reasons for the establishment of the GFHF is job preservation, there will be a direct link between the quantum of loans and the number of employees employed by potential clients.
For more, go to https://givingforhope.co.za/