EBB Loan: Small businesses given chance to ‘bounce-back
The Energy Bounce-Back (EBB) Loan Guarantee Scheme emerges as a beacon of hope for small businesses and households.
If you are a small business or a household looking for ways of not experiencing load shedding perhaps the National Treasury’s Energy Bounce-Back (EBB) Loan Guarantee Scheme is an initiative that you have been looking for. The EBB aims to encourage the generation of power through rooftop solar. Those interested in the scheme have until 30 August 2024 to apply. The EBB will help small business and households ease the effects of load shedding. It will work through three mechanisms.
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EBB LOAN
Mechanism1 looks at loan guarantee for rooftop solar for Small and Medium Enterprises (SMEs) and households. This investment includes solar panels, batteries, inverters, and other installation related costs. This mechanism will also allow for loans to purchase resilience assets like small portable batteries for businesses only, Prospective applicants can access the EBB Loan Guarantee Scheme, by contacting their primary bank to determine if the bank is participating in the Scheme.
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“If your bank is not participating in the Scheme, please approach any other bank. You can also enquire through your Development Finance Institution or non-bank finance provider,” National Treasury said in a statement.
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SME can borrow a maximum of R30 000 through the scheme, this is to enable access for micro, informal businesses that may require portable batteries or similar equipment to these assets.
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SOLAR
For households, a maximum loan amount, for the purchasing of rooftop solar, will be R300 000 per household. The EBB also aims to enable access for micro and informal business who may require portable battery or similar equipment to these assets, as well as businesses operating on premises where landlords are unable or unwilling to enable solar panel installations.
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Did you know? The EBB is inclusive of Mechanism 2 and 3. Mechanism 2 focuses on loan guarantee for rooftop solar for Energy Service Companies. While Mechanism 3 looks at working capital loans for businesses in rooftop solar supply chain.