Today, a lot of MSMEs are facing mass extinction with businesses shut off and fixed costs still burdening them. The new additional GST policy has made the lives of the entrepreneurs difficult. Are you one among the SME entrepreneurs who is facing difficulties in managing a business amid COVID crisis?
Then, here could a relief. GAME (Global Alliance for Mass Entrepreneurship) is trying to create a $100 million-plus SME Stabilization Fund that will provide low-interest working capital loans to the eligible SMEs.
The GAME has come up with this idea after speaking to hundreds of organizations, entrepreneurs and small businesses.
Ravi Venkatesan, Founder and Chairman, GAME revealed in an interview, “The number one issue for all the SMEs is cash. Their revenues have gone to nil, vendors have stopped paying, and still, they have to pay their employees.”
“So the plan is to help them attain better liquidity.”
GAME is in touch with a lot of microfinance bodies and non-banking financial companies (NBFC) to roll out this benefit.
GAME would offer a very low interest product to microfinance companies so that effective interest rate remains about 6 percent.
The tenures of these loans will be about 15 months of which there will be a moratorium interest on the first three months. The interest rate will be applicable from the fourth month onwards.
The GAME is trying to launch this product as soon as possible to help the cash stripped MSMEs. “Speed is critical.
If it takes 3 months to launch this, it will be late by then,” added Venkatesan.
