Mauritius Minister Announces Financial Support To SMEs and The Self-Employed

Mauritius Minister Announces Financial Support To SMEs and The Self-Employed

In a press conference held on Friday 19 March 2021, the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy announced that more financial support will be given to self-employed persons as well as SMEs (Small and Medium Enterprises).

This Governmental initiative aims at providing support to those who have suffered a loss of revenue because of the national lockdown and COVID-19.

A communique was then issued following the press conference further detailing the 5 measures to be implemented.

1. One-Off Grant

This measure only applies to self-employed persons. A one-off grant of Rs. 10, 000 will be given to eligible self-employed persons. In the press conference, the Minister of Finance estimated that some 200,000 eligible persons would benefit from the one-off grant.

As of Monday 22 March 2021, there are no directions as to what would make a self-employed person eligible for this one-off grant. We shall update you as soon as more information is available.
Therefore, with the one-off grant and the allowance under the Self-Employed Assistance Scheme, eligible self-employed persons are entitled to financial assistance up to Rs.12, 550

2. Interest-Free Loan

This measure will only apply to SMEs. SMEs will be eligible for an interest-free loan scheme of an amount of Rs. 100, 000 at no interest rate with a moratorium of 5 years. The scheme is eligible for SMEs with a turnover of less than Rs. 50 Million.

3. Million SME Special Support Scheme

This measure only applies to SMEs. There will be a 1 Million SME Covid-19 Special Support Scheme. The Development Bank of Mauritius (DBM) will grant loans up to Rs. 1 Million without the need to provide a guarantee and at an interest rate of 0.5%. This loan will also be subject to a 1 year moratorium period.

4. VAT Payment

This measure only applies to SMEs. Value Added Tax (VAT) due for the period ended 31 March 2021 has been extended to 15 July 2021.

5. One Year Moratorium For Existing Loans

This measure only applies to SMEs. The DBM is granting a moratorium period of 1 year to all existing loans taken by SMEs.

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