National Treasury has launched its long-awaited Energy Bounce Back Loan Guarantee Scheme (EBB), which will allow households and small businesses to borrow a maximum of R300 000 and R10 million, respectively, from commercial banks to mitigate the impact of load shedding.
In the scheme, the government will guarantee solar-related loans for small and medium enterprises on a 20% first-loss basis to encourage businesses and individuals to invest in renewable energy and increase electricity generation.
Participating banks and other lenders will lend this money as well as their own funds for the un-guaranteed portion of 80% of the loan amount to SMEs and households at an interest rate of no more than the repo rate plus 6%.
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