Ministry of Finance has revealed over USD 23 million has been issued to Small and Medium Enterprises (SMEs) under the COVID-19 Recovery Loan Scheme.
The recovery loan scheme was introduced by the government to assist local businesses affected by the COVID-19 pandemic. Loans for SMEs are issued by SME Development Finance Corporation (SDFC).
Ministry of Finance revealed SDFC has so far disbursed loans worth USD 23.1 million for 2,108 individuals and businesses. This includes USD 1.3 million issued to 659 sole proprietors running their businesses from home.
The majority of the loans issued by SDFC were directed towards businesses selling food items. In this regard, a total of USD 13 million was issued among 845 such businesses. Meanwhile, 204 businesses working in the construction industry were issued USD 3.9 million as recovery loans.
The government introduced an economic relief package to prevent local businesses from going bankrupt amid the COVID-19 pandemic. The relief loans are provided through the SDFC and the Bank of Maldives (BML).