Busia Entrepreneurs Urged to Access Small Business Recovery Fund

Officials from the Uganda Investment Authority (UIA) and the Bank of Uganda are making a concerted push to increase awareness and accessibility of the Small Business Recovery Fund (SBRF) among entrepreneurs in Busia District. The initiative aims to provide much-needed affordable financing to small businesses, farmers, and other enterprises impacted by recent economic challenges.

A recent sensitization workshop highlighted that participation in the SBRF within Busia has been notably low, with only about 1% of eligible business owners accessing the funds since their disbursement through local commercial banks. Similar low uptake has been observed across the wider Bukedi sub-region.

The SBRF is designed for enterprises employing between 2 and 49 individuals and with annual turnovers ranging from UGX 10 million to UGX 300 million. Eligible businesses can apply for the fund, which offers a competitive interest rate of 10%, through commercial banks and microfinance institutions.

Bank of Uganda officials urged business owners to take advantage of this affordable financing to expand their operations. However, they also cautioned against defaulting on loans, citing a concerning trend among some cross-border traders who attempt to evade repayment. Repayment according to bank terms is crucial to avoid legal repercussions.

Furthermore, UIA encouraged entrepreneurs to register on the National SME Portal. This platform is promoted as a centralized hub for reliable business information, market connectivity, and sustainable growth for Micro, Small, and Medium Enterprises (MSMEs).

This outreach campaign signifies the government’s dedication to fostering small business growth as a critical component of economic recovery and national development.

Source: Uganda Investment Authority