Small businesses are the backbone of our economy and play a vital role in their communities. A new rapid Interest Free Loan scheme will help ensure they get the finance they need quickly to help survive this crisis. This is in addition to the CBS loan scheme, tax deferrals, and the job retention scheme, which are already helping other micro and small businesses.

A list of questions has been drafted to assist you with what you need to know or do if you are interested in obtaining assistance under this relief scheme.

1. What is the 7th December Support Scheme – Short Term Assistance Package for Businesses?

   The Government hereby establishes an interest free loan facility capped at SCR100,000/- at the Bank for eligible Borrowers for the purposes of financing repairs and working capital to assist businesses affected by the incident at the CCCL quarry on 7th December, 2023, in order to ensure that those enterprises get access to affordable financing they require in a more expeditious manner.

   These are Small business with an annual turnover of less than SCR 2million.

   The relief scheme is financed by Government of Seychelles and will be administered by committee in partnership with the Development Bank of Seychelles (DBS). DBS will be responsible for Disbursement and repayments

2. What is the purpose of the 7th December Support Scheme?

   The scheme is meant to assist eligible small businesses that requires financing support as they have been affected by the incident. The objective of this assistance would be to permit these businesses to revive and maintain their operations in the short term by providing additional funding to meet their:

   • Salary obligations - submission of Payroll for certification
   • 13th month payment - submission of employee contract of employment/GOP
   • Stock and equipment replacements- Asset registry/quotation of inventory being replaced
   • Operating cost
   • Rent- submission of Lease agreement stipulating rental cost
   • Redundancy costs- where applicable approval documents from employment department
   • Minor repairs to premises.
3. What are the main terms and conditions of the Small Business Scheme Funds?

   Financing will be provided in the form of loans administered by DBS with the following main terms and conditions as applicable:

   • 0% Interest
   • One off Administration Fee of SCR 100.00
   • Moratorium of 12 months and a maximum repayment period of 3 years, exclusive of the 12-month moratorium for the principal amount of the loan.
   • The borrower will be required to provide a guarantee of either;one Guarantor; or Alternative security valued at 125% of the loan amount being serviced.
   • The borrower is responsible to repay 100% of the loan amount. When defaults occur, Development Bank (DBS) are obligated to follow their standard commercial recovery procedure. A penalty interest will be applied to defaulters.
4. What are the main eligibility criteria that will be considered for obtaining assistance under the Small Business Support Fund?
   • Annual turnover of less than SCR 2million for the financial year 2022 (as declared with the Seychelles Revenue Commission).
   • Registered Seychellois business engaged in trading or commercial activity in the vicinity of the CCCL quarry;
   • Your business must have been established before 7th December 2023;
   • Your business must be a going concern and neither in bankruptcy, liquidation or similar.
   • Have been adversely affected by the incident at the CCCL quarry of 7th December 2023
   • Tax compliant with appropriate lodgements made to the Seychelles Revenue Commission (SRC)
5. How do I apply for assistance under the Small Business Support Funds?

   Interested small businesses will need to apply by visiting the website https://mof.egov.sc/dec7supportscheme of which certain supporting documents will also be required:

   Applicants may be requested to submit additional supporting documents as part of the compliance process as per the respective laws and regulations covering Anti-Money Laundering.

6. Where do I go in order to obtain more guidance on the Small Business Support Funds?

   Contact Details are listed below:

   Organization	Contact Details	Type of Guidance
   Development Bank of Seychelles (DBS)	Tel: 4294400 Email: secretariat@dbs.sc	Enquiries Loan Application Status Any matters dealing with compliance
   Ministry of Finance, National Planning and Trade	Tel: 4382032	Enquiries
   Ministry of Investment, Entrepreneurship and Industry	Tel: 4297217	Enquiries

7. Can I apply for assistance under the Small Business Support Funds more than once?

   Businesses are entitled to apply for one loan facility per separate business. Any additional requests for assistance will not be processed.

8. How long will it take for my application to be processed?

   This will depend on the complexity of each application and the amount of financing being requested. However, in general, it should take approximately 10-14 working days to process your application, subject to the submission of all documents required to process your application.

9. Can I ask for an extension to the 12-month moratorium on loans?

   The moratorium is only for 12 months and non-negotiable. This may be subject to change in consideration of ongoing developments and will be communicated accordingly.

10. If I opt for assistance under the Small Business Support Funds, will my records on the Credit Information System (CIS) be adversely impacted?

    No, provided that you honor your commitment. The business is responsible to repay 100% of the loan amount. When defaults occur, Development Bank (DBS) are obligated to follow their standard commercial recovery procedure. A penalty interest will be applied to defaulters.

    Failure to repay loan amount will result in impact of your credit information and potential legal proceeding. Therefore, it is advisable if you have any issue with regards to repayment after the 12 months' moratorium to contact DBS and discuss your conditions accordingly. We encourage business to take this proactive approach.

11. I currently have loan facilities in default, can I apply for assistance under the Private Sector Relief Scheme?

    Please refer to question 4 above on the eligibility criteria for obtaining assistance under the relief scheme.

    However, the assistance obtained under the support scheme is meant to be used for meeting critical expenditures not including the repayment of existing loans.

    If you are facing difficulties in meeting your existing loan obligations, we encourage you discuss with the respective financial institution before you apply as constant default of repayments of existing facilities could have an adverse impact on the scoring of your application.

12. My business has an annual turnover greater than SCR2 million. Can I still apply for assistance under the Small Business Support Funds?

    Only small business with an annual turnover not exceeding SCR2 million can apply for assistance under the support scheme. If your turnover is more than this, we encourage to seek alternative support schemes.

13. Will I be charged additional interest as a result of opting for the moratorium for loans?

    There is no interest on this loan.

    The borrower is responsible to repay 100% of the loan amount. When defaults occur, Development Bank (DBS) are obligated to follow their standard commercial recovery procedure. A penalty interest will be applied to defaulters.

14. What will happen to my loan repayments after the 12-month moratorium?

    After the 12-month moratorium, customers will begin payment of monthly instalments consisting of principal on the loan amount over the remaining tenor of the loan. There is no interest to be charged unless the borrower defaults

15. Where do I go if I feel I am being unfairly treated by DBS in regards to the Small Business Support Funds?

    If you are not satisfied with the outcome of your application, you are entitled to make a complaint with the Development Bank of Seychelles. Your complaint should be handled in a timely and efficient manner in accordance with established regulations and practices.